WORK WE’VE DONE: CASE STUDIES

Communications to generate support for an acquisition

A technology company sought to complete a highly strategic acquisition, but the deal’s valuation was unusually high. Sharon Merrill worked with management on communicating the benefits of the deal, which was ultimately well received by investors.

Client Challenge: Convince investors of the merits of an acquisition

A public technology company agreed to purchase a private firm with products that would perfectly complement their own and provide an entry into a high-growth market. The purchase price valuation on a price/sales basis, however, was much higher than other recent technology acquisitions. Management needed to convince investors that the acquisition was in their best long-term interests.

Sharon Merrill Approach: Integrated communications campaign

Sharon Merrill implemented a comprehensive campaign that focused on communicating the strategic benefits of the deal and valuation ratios based on bottom-line projections. The campaign included a news release highlighting acquisition benefits, a deal fact sheet, an investor conference call with management, personalized outreach to major investors and analysts, and interviews with The Wall Street Journal, The New York Times, Bloomberg Radio and The Associated Press, among others.

Results: Highly positive investor reaction and stock increase

Investors reacted very favorably to the acquisition and financial analysts were exceedingly positive in their reports. The stock climbed 5% on the day of the announcement and continued to increase 24% in the subsequent month. The acquisition closed successfully and has become an important growth driver for the company.