Merger and Acquisition Client Announcement Letter (Template Included) (2023)

Mergers and acquisitions are an exciting time for any organization. But they can also be stressful when you have to figure out how to write a letter to announce said merger or acquisition to your clients.

Communicating large changes effectively, such as a merger or an acquisition, is important to maintain good relationships with your clients.

You might be thinking, why should I focus on my clients during such a hectic time?

Think about it this way: your clients are the blood and the pulse of your organization. Without the revenue generated from their business, your entire organization could falter.

Merger and Acquisition Client Announcement Letter (Template Included) (1)

And yes, new business is important, but sustaining your current business is even more important to maintain growth and brand name across the industry.

(Video) Merger & Acquistion (M&A) Deal Structures Explained

It is easy for leaders to fall into the trap of focusing on all of the new clients and business that they will obtain from the merger or acquisition, which can then lead to the attrition of clients if they aren’t catered to properly during the transaction.

In some industries, losing just one client can have a huge impact to your yearly financial statements. A small startup that sells software for a subscription fee of one million per year to five different companies could lose 20% of their revenue if they lose just one client. Ouch!

So now that we know why it is important for you to communicate these changes to your client, you need to understand why your clients finds these specific changes important to them.

Merger and Acquisition Client Announcement Letter (Template Included) (2)

Why do clients care about your merger or acquisition?

There are several reasons why a client could potentially care about your merger or acquisition.

Merger and Acquisition Client Announcement Letter (Template Included) (3)

Have you ever had a super-engaged client? Well, those are called your brand evangelists. They love your company, give you referrals, subscribe to all your communications, and are super users.

(Video) Mergers and Acquisitions Explained: A Crash Course on M&A

For example, I love the brand Halo Top. (They sell low-calorie ice creams that actually taste pretty good!) I follow all of their social pages, and whenever they release a new flavor, I want to know about it so I can go buy it and test it out. I also tell all of my friends and family about the product as well. I am definitely an evangelist.

Well, your evangelist clients will want to know about your merger and acquisition because it will be newsworthy to them. Just like how Halo Top ice cream releases are newsworthy to me!

Besides this reason, you also have an obligation to your clients to alert them to any changes in your service. You might not think that the merger or acquisition will change your service, but it might impact how your client see’s your service.

For example, let’s say that you acquire a small business that has ties to a manufacturing firm. This manufacturing firm is a competitor of one of your clients. This could potentially change how your client views your service.

Merger and Acquisition Client Announcement Letter (Template Included) (4)

They could see this new business relationship as a conflict of interest for their organization and need to re-evaluate using your services.

Another example of this would be if you merged with an organization that had technological advances far beyond your current offering. Alerting your clients to this could help them save money on their vendor expenses if they were trying to purchase something with the same functionality, and also strengthen their relationship with your brand in return.

(Video) Growth Through Acquisitions | Wharton Scale School

Finally, when an organization is acquired or two organizations merge, there are usually changes in processes and technological systems. Your clients need to be alerted of this far in advance so that they can minimize the impacts on their own internal systems. Not alerting them of this, and then having a huge break or change in your service could jeopardize their productivity, morale, and even their revenue. Which would be very bad for your business relationship!

Merger and Acquisition Client Announcement Letter: What should you include?

Now that you understand why communicating your merger or acquisition to your clients is so important, let’s break down how you should notify them.

For some of your clients, it might make more sense to give them the news in person. For example, if you work with one really high-impact client that you need to keep happy to have more stable revenues, you should probably take the time to notify them in person.

But generally sending over a letter (via email) to notify your client of a merger or acquisition is perfectly acceptable.

It is recommended that you carefully choose the timeframe when the email will be sent as well. It is important to tell your clients far enough in advance so that they can prepare for how it will potentially impact their business, and you also want to make sure they get the news before it breaks in the press.

Merger and Acquisition Client Announcement Letter (Template Included) (5)

So once you have figured out the time frame and the channel of delivery it is time to craft the letter. Here are the sections your letter should include:

(Video) MERGER AND ACQUISITION IN INDIA EXPLAINED IN HINDI | Concept, Reason/Motives with Real Examples ppt

  • Announcing the merger or acquisition: In this section, you will want to announce what companies have either been merged or acquired, what the official date of the transaction is, and the new name is of the entity (if there is one).
  • Background on your firm: Explain the history of your organization in this section. Include when you were founded, what achievements you’ve had, and where you are in this present day. Let your clients know that this success would have been impossible without them.
  • Reason for the merger or acquisition: Explain why your organization decided to participate in this merger or acquisition deal. Was it to acquire more advanced technology? Reach a broader market? Tap into a completely new market? Make sure to explain your reasoning. This section will be even better if you can identify why this reason for the merger or acquisition will be impactful for your client.
  • What synergies you will capitalize on: In this section, you will need to explain more in detail about what synergies the two organizations will align on. For example, you can discuss the value both of you place on high-quality products or your joint mission to create a more transparent world.
  • What this means for your clients: This is the most important part of the letter. You need to communicate to your clients how this will impact the services or products they receive from you. You should address any new services or products that will be available to them, how the merger or acquisition will impact the cost of their current services, if they will have a new point of contact (and who that person is), and if there will be any changes to the types of products or services they receive now.
  • Provide logistical information: Where will your new company be operating from? Will your organization’s phone numbers change? If your organization has a new company name, what is it? Also, make sure to provide contact information for someone at your organization that your client can call if they have more questions.
  • Show thanks: Thank your clients for their continued support and partnership, and let them know you are looking forward to the future and doing business with them.

The sections listed above are the basic things you should include in your letter to your clients.

While every merger or acquisition client letter should contain this type of information, it is important to think about the following considerations:

  • You might have to modify the sections above based on whether or not your organization has gone through a merger, has been acquired, or has acquired another organization. The verbiage and the type of information that you will need to release can vary greatly based on these differences.
  • Next, you might need to modify this letter based on your organization’s own specific situation. Not every merger or acquisition is the same, and the time frame for these deals isn’t always the same. So, make sure that you understand what your specific situation needs, and then change the letter to make sense for your organization.
    Merger and Acquisition Client Announcement Letter (Template Included) (6)

If done correctly, your client notification should accurately update your clients on all of the news surrounding your merger or acquisition. By doing so, you ensure that your clients are in the know, ready to potentially make changes, and have an understanding of what is happening with the partnership you have created with them.

As a note, it's important to mention that these letters should be customized to fit your business. The samples presented here are to get you started on that journey by showcasing a typical, standardized letter.

You can download our sample letter here:

Merger and Acquisition Client Announcement Letter (Template Included) (7)


How do I announce my M&A? ›

The announcement should include the following information:
  1. Details about the companies.
  2. Transaction effective date.
  3. Reason for the merger or acquisition.
  4. Goals, impacts, and new objectives of this transaction.
  5. Information on the specific business being merged or acquired (What do they do?
Jul 24, 2018

What are the examples of announcement? ›

Example Sentences
  • Many people were surprised by the government's announcement that there will be a cut in taxes.
  • I heard an announcement on the loudspeaker saying that the store was closing in 10 minutes.
  • The company president made an announcement about the merger.

How do you write a proper announcement? ›

How do you write an announcement? Keep announcements clear, concise and with your audience in mind. Include only the most important information, like the date, time and location of an event or the details of the achievement you're celebrating. You may want to add a photo or illustration to go with the announcement.

How to write a letter to customers announcing change of ownership? ›

Change of Ownership Announcement Letter Template:

Dear _____(Sir or Madam), We want to bring to your notice and announce that our firm, ________________ (name of the Existing Firm) located at _____________ (Location of the Firm) is being transferred to the new owner ________________ (Name of the New-Owner).

What are the two examples in merger and acquisition? ›

3 successful mergers and acquisitions examples
  • Successful acquisition: Disney, Pixar and Marvel. ...
  • Successful acquisition: Google and Android. ...
  • Successful merger: Exxon and Mobil.

How do you explain mergers and acquisitions? ›

Both terms often refer to the joining of two companies, but there are key differences involved in when to use them. A merger occurs when two separate entities combine forces to create a new, joint organization. Meanwhile, an acquisition refers to the takeover of one entity by another.

How do you write a wide announcement for a company? ›

What to include in an employee announcement message?
  1. The employee's full name and any preferred name. ...
  2. What their job title will be.
  3. What department/team they'll be working with.
  4. Who they are replacing, if applicable.
  5. If this is a brand new role.
  6. What work they will be responsible for.
  7. Where they will be located.
Nov 23, 2021

What is a side letter M&A? ›

In the context of an M&A transaction, letter agreements are sometimes referred to as side letters. They are agreed in connection with a set of transaction documents. Occasionally, when an acquisition agreement is not conveniently suited to address an arrangement amongst the parties, side letters are used.

What is a process letter M&A? ›

The process letter typically provides information on the M&A auction schedule, instructions, and contact information for all future communication, as well as any terms that the bidders must include if they make an offer.

How do you write a simple press release for an event? ›

Learn the basics
  1. Avoid the first person. Event press releases should always be written in the third person; do not use pronouns “I” or “myself.” Quotes are the only exception.
  2. Keep it succinct. Press releases should be brief and no longer than a page of copy.
  3. Avoid hyperbole. ...
  4. Consider the target audience.
Aug 15, 2022

What is a good sentence for announce? ›

Example Sentences

The government announced a cut in taxes. They announced plans to move the company out of the state. The company president has announced her retirement. Their engagement was formally announced in the newspaper.

What are the 5 forms of announcement? ›

The verb “announce” has five different forms: base form, past simple, past participle form, present perfect, and present perfect participle.

What is an announcement statement? ›

An announcement is a statement made to the public or to the media that gives information about something that has happened or that will happen.

How do you start a professional announcement? ›

Start with an introduction

This allows readers to know who is making the announcement and what it is. Try to establish both your company name and the subject of the announcement within the first two sentences of the email. It is often effective to include a hook to get readers' attention.

How is a meaningful announcement written? ›

Announcement Letter Writing Tips to Remember:

Stick to the content and pay attention to the details. Use simple language and keep it short. Be gracious (and professional) in your letter. Use the letter as an opportunity to build goodwill.

What is a formal announcement letter? ›

Formal Announcement Letter is the declaration or a statement about an important event, occurrence, change in company policy or a meeting that people need to be aware of. Formal Announcement letters are used for a variety of personal or business applications.

How do I inform clients of company name change? ›

Day of name change:
  1. An announcement email to all customers and trials (despite who had opened / not opened)
  2. An announcement email to cold-leads, communicating our name change and inviting them to start trialing us again.
  3. A reminder after-login message to all customers and trials.
  4. A social media post.
Nov 13, 2018

How do I inform the clients of a business closing? ›

One of the most common ways to announce your business intentions is to send a company closure letter to customers. This is a good time to thank your clients for their support during your years of operation.

How do you write a letter to clients that business is closing? ›

What to include in a closing letter to clients
  1. Specify the case and its status. ...
  2. The date. ...
  3. The reason for the end of representation. ...
  4. The status of any client documents. ...
  5. Next steps. ...
  6. Request feedback. ...
  7. A note of appreciation.
Apr 9, 2021

What are the 3 stages of mergers and acquisitions? ›

The 10 key phases of a merger and acquisition deal
  • Strategy development.
  • Target identification.
  • Valuation analysis.
  • Negotiations.
  • Due diligence.
  • Deal closure.
  • Financing and restructuring.
  • Integration and back-office planning.
May 21, 2021

What are 10 common reasons for mergers and acquisitions? ›

Reasons for Mergers and Acquisitions
  • To grow the business.
  • To achieve revenue synergies.
  • To achieve economies of scale.
  • To diversify.
  • To vertically integrate the business.
  • To avail of tax benefits.
  • For knowledge transfer.
Aug 26, 2022

What are the four types of mergers and acquisition? ›

What are the most common types of mergers and acquisitions?
  • Horizontal merger.
  • Vertical merger.
  • Congeneric mergers.
  • Market-extension or product-extension merger.
  • Conglomeration​

How do you make a merger and acquisition successful? ›

Based on my experience, here are five tips to help ensure a smooth and successful M&A:
  1. Ensure fairness for all parties.
  2. Realize that culture is key.
  3. Learn the value of a reputation.
  4. Know when to walk away.
  5. Secure alignment from the right people.
Sep 13, 2021

What are the four phases of M&A and what happens at each phase? ›

Often businesses work with M&A consultants or technology partners with experience in the M&A process to ensure success. The merger & acquisition process is very complex, yet can be broken down into four phases: due diligence, agreement, integration, and value attainment.

What are three advantages of mergers and acquisitions explain? ›

Diversification of the products, services and long-term prospects of your business. A target business may be able to offer you products or services which you can sell through your own distribution channels. Reducing your costs and overheads through shared marketing budgets, increased purchasing power and lower costs.

What do you write in an organizational announcement? ›

(To coworkers from supervisor) Dear [department name] team: I'm very pleased to announce that [new employee] will join [school/unit/department name] as [job title]. [New employee] will begin her journey with us on [day, month, year], and report to me.

What is included in acquisition? ›

These costs include shipping, sales taxes, and customs fees, as well as the costs of site preparation, installation, and testing. When acquiring property, acquisition costs can include surveying, closing fees, and paying off liens. This amount is considered to be the book value of an asset.

What are the 4 stages of merger and acquisition? ›

Mergers & Acquisitions: The 5 stages of an M&A transaction
  • Assessment and preliminary review.
  • Negotiation and letter of intent.
  • Due diligence.
  • Negotiations and closing.
  • Post-closure integration/implementation.

What are the 3 stage model of merger and acquisition? ›

The three stages in question are pre-combination, combination (involving the integration of companies) and solidification and advancement (which forms the new entity). Pre-combinationrefers to processes that take place before the M&A is completely legal.

What are the three acquisition strategies? ›

For a high-growth company, acquisitions fundamentally boil down to one of three types: (1) team buy, (2) product buy, or (3) strategic buy.

How do you write a winning announcement letter? ›

A contest announcement email template. I've got big news for you, [first name]. Our contest, [name of your contest] has come to an end, and the winners have been selected. We want to thank everyone who participated.

What are the basic elements of mergers and acquisitions? ›

The 10 key phases of a merger and acquisition deal
  • Strategy development.
  • Target identification.
  • Valuation analysis.
  • Negotiations.
  • Due diligence.
  • Deal closure.
  • Financing and restructuring.
  • Integration and back-office planning.
May 21, 2021

What does merger and acquisition include? ›

Merger: When two companies join together to form a single entity. Consolidation: When two or more companies join together to form a single entity. Acquisition: When one company takes over another company.

Does acquisition have to be 100%? ›

Under the accounting rules if you acquire a controlling stake (typically over 50% of the shares outstanding) in another company you must consolidate 100% of the assets and liabilities, revenues and expenses even though you might not own 100%.

How do you use customer acquisition in a sentence? ›

The firm has invested heavily in its customer acquisition strategy.

What is a good customer acquisition strategy? ›

A strong customer acquisition strategy: 1) attracts leads, 2) nurtures them until they become sales-ready, and 3) converts them into customers. The overall cost of these steps is referred to as your customer acquisition cost (CAC).

What is customer acquisition funnel? ›

The customer acquisition funnel serves as a framework that will assist you in tracking and monitoring how effective the process of attracting and retaining customers is, and how you can make amendments to the process in order to continuously improve the end result.


1. Understanding The Mergers & Acquisitions Process
(PNDC -)
2. How to Ensure Merger & Acquisition Integration Success [M&A Restructuring Best Practices]
(Eric Kimberling - Digital Transformation)
3. Top 10 Business Mergers and Acquisitions of All Time
4. M&A Deal Structure - Common Issues in Mergers & Acquisitions
5. Merger & Acquisition Bylaws 2073 in Detail।मर्जर तथा प्राप्ति सम्बन्धि विनियमावली २०७३का चुनौती सहित
(Sara Solution Nepal)
6. A - Z of Mergers & Acquisition Investment Banking (NEW)
(Naasir Ramjaun)


Top Articles
Latest Posts
Article information

Author: Nathanial Hackett

Last Updated: 04/07/2023

Views: 5418

Rating: 4.1 / 5 (72 voted)

Reviews: 87% of readers found this page helpful

Author information

Name: Nathanial Hackett

Birthday: 1997-10-09

Address: Apt. 935 264 Abshire Canyon, South Nerissachester, NM 01800

Phone: +9752624861224

Job: Forward Technology Assistant

Hobby: Listening to music, Shopping, Vacation, Baton twirling, Flower arranging, Blacksmithing, Do it yourself

Introduction: My name is Nathanial Hackett, I am a lovely, curious, smiling, lively, thoughtful, courageous, lively person who loves writing and wants to share my knowledge and understanding with you.