Recently, I celebrated the sunny weather and a shade more stimulating pace of mergers and acquisitions (M&A;) activity by being out and about attending a series of conferences and seminars.

Two events, “Why Buyers are Buying,” conducted by Mertz Associates and “Survive 2009? Thrive in 2010,” offered by the Midwest Business Brokers & Intermediaries included excellent observations from every side of the M&A; equation. Such observations included perspectives on buying and selling motivations, and panel discussions on due diligence and negotiation.

Since my focus was on the role of communications within M&A;, my listening and learning was selective. Nevertheless, three observations:

• The more sophisticated the buyer, the more the selling company’s culture weighs in on the valuation. Likewise, the more ardent the seller, especially one with a wealth of family history in the business, the more a strong meshing of cultures is an important driver.
• Throughout the continuum of doing a deal, there are myriad factors that can get employees rattled. The right communications at the right time to the right people can be the vital ingredient in minimizing disruption and maintaining business momentum. Determining the recipe for those communications keeps both buyers and sellers awake at night.
• There is a growing emphasis on buyer due diligence that is focused on analysis of the go-forward risks. In this context an important tool that generates purchase value for the buyer and sales value for the seller is the employee and customer satisfaction survey. Introducing a strategic partner to conduct the research, whose goal is to strengthen employee and customer relationships, can be a win-win.

Artful due diligence and skillful negotiations are important. Getting in and out of the funnel of the transaction smoothly and with transparency, though, seems to boil down to the ability to develop trust, communicate in good faith and bridge the culture gaps.