Your Company Is Being Acquired. Now What?

You've just seen announcements that your company is being acquired, and now you’re probably wondering what this means for you. Mergers and acquisitions (M&A) can bring a lot of change—to both your finances and your career. Here's a look at how to navigate the road ahead.

One common theme: Communication is crucial. 

"Overcommunication during that period is so important for you as an employee," says Kate Winget, Managing Director and Chief Revenue Officer for Morgan Stanley at Work. There can be a lot of uncertainty during these times, as you may have questions about what comes next and, particularly for larger companies, you may be exposed to news stories and social media speculation about what is, or will, happen. 

Clarify Details Around Financials

When an acquisition gets announced, employees with equity awards may wonder how the deal could impact them financially. Those with restricted stock units (RSUs) or stock options will want to know if those will be accelerated or stay on the regular vesting schedule. Understanding what to expect and what to do to optimize the value of your equity awards is critical, especially during this time of change. 

"Education is key. It's an area companies don't prepare employees for well enough," says Winget, who has experienced several acquisitions during her career. 

You may want to check your equity compensation plan documents for information about the type(s) of equity awards you have, the vesting period, tax implications and other key details. If your company has educational sessions, be sure to attend those. This is also a good time to consult with a Financial Advisor or accountant so you can start to map out a plan. Once you know what will happen to your equity awards, you can decide what to do with them. 

Be Ready for Questions

If you’re a manager, you may face questions from your team about what’s happening, what’s expected to happen or why certain decisions were made. While you may not have all the details, it can help your team’s morale to be as transparent as possible—as long as you’re aligned with HR and company policies. For example, if you have key talent you would like to retain, you may want to be clear about their future roles in the new organization, to the extent you can.

There may also be changes to other company benefits, such as health insurance or retirement plans, that you’ll need to address. Lastly, but most importantly, your team may want to know about the culture at the acquiring company and how your existing team culture may change. Change is a part of M&A transactions, and while you might not have all the answers now, it can be reassuring to your team if you keep them updated as things evolve.

Again, as a manager, transparency and clear communication can help your team feel more in the loop, and potentially more on board with what is happening. Remember, you’re not expected to have all the answers. It may be a good idea to direct members of your team to HR, or any provided educational materials, if they have questions about their individual situation.

Set Goals

Acquisitions are also a time for some self-reflection—whether or not your role is affected by the deal. You may want to think about what you want out of your career, and what the new trajectory might look like. Is there something you hope to gain from this change? A different role? A promotion? Having clarity around your goals is the first step to reaching them. This can be a good time to review your job function, list your strengths and highlight your achievements. 

Build Bridges

If your company is being acquired by a larger company, it may offer new opportunities for your career—if you do your homework. Study up on the acquiring company by listening to their earnings calls, researching their strategy, and hearing what leaders say about the company's growth outlook and culture. 

"I often see people wait for that information, but you find all these things online," says Winget, who recommends doing the research in advance to determine if the company is a good match for you. 

When appropriate and if approved by your senior management team, managers may be able to reach out to similar groups at the acquiring company to arrange meet and greets, and individuals can connect with people they may have worked with in the past who are now at the acquiring company. "Find the resources and talk to people at the company. You'd be surprised how many people you might already know who are working there," says Winget. 

Acquisitions can come with highs and lows. One thing to keep in mind is that you're going through it with your colleagues. Keep a running list of questions, do your own research and ask your questions when you can. Being prepared can make all the difference.