Why is this a concern? The answer is obvious. In both cases there is usually a desire to cut costs. Your business relationship represents a cost. You want to keep the business relationship you have developed. Here's what you need to do:

Gather public information. There will be news stories. The company will have put out press releases. The trade publications will have done interviews. Learn as much as you can. What are the stated reasons for this move? What is company management telling research analysts on Wall Street?
Find out what your firm thinks. You have a business relationship you cultivated. Perhaps it's a relationship you inherited. You are doing business with one division or segment of the client firm. You work for a big firm. They may supply several products and services. The relationship is much bigger than your piece. Firms often have "national account managers." What do they know? Does your firm have a strategy?
Understand the logic of restructuring. Acquisitions and reorganizations usually are undertaken to reduce overhead expenses. People talk about "economies of scale." Put another way, they want to cut costs. They will likely look at every line on the budget and determine if this expense can be eliminated or cut. You represent a cost, but you might be cheaper relative to competitors. Employee satisfaction is also an issue because retaining quality employees is important to every firm. This could represent an opportunity.
Think: Who do you know at acquiring firm? You have connections within the firm. They might not be your connections much longer. On the other hand, their star might be rising. Keep in touch with your connections. Who do you know at the acquiring firm, if there is one? Any college alumni or LinkedIn connections?
Keep in mind: Water flows downhill. You have heard about the "Big Bang Theory" in connection with the origin of the universe. Companies do not generally blow themselves up and rebuild from the ground up. They make changes starting at the top. The firm goes from six divisions to three divisions. Senior management retirements and departures are announced. Then comes changes on the regional level. The district level follows. Do not assume the changes are over until the changes at the local levels are announced.
Remember, people keep their heads down. Do you remember that scene in Indiana Jones and the Last Crusade when people walked forward and their heads were chopped off? Indiana Jones realized you needed to keep your head down. In company reorganizations, long- term employees know to keep still and quiet, not attracting attention when layoffs are announced.
Be mindful of what your connections will and won't do. Because people are keeping their heads down, your client will not stand up and be your champion, defending your contract to senior management. The risks outweigh the rewards. They will not provide an insider's view of what's going on or reveal how far the reorganization has progressed and whose stars are ascending. So, don't ask your client for too much. They will want to help you, but not at risk to their careers.
Try this low risk way to gather info: Years ago I read about a great strategy: Your best inside resources at another company are the people who do the same job as you! Cultivate friends within your client firm's sales department. They are on the revenue side of the equation, same as you. Their jobs are relatively safer. They are under the same demands as you, so there should be sympathy. You are not competing with each other. These friends should be able to tell you who are the new decision makers in your product area.
Be a tactful resource for your clients. Give to get. Your connection might be worrying their department or job might disappear. You can't be asking for things all the time. But you can remind them of your long friendship. Tactfully let them know if they need some help in the future, you are willing to share your connections. Without saying it, you are letting them know you would be a resource if they needed to go job hunting.

Instant Insights /

What to do when a client tells you: 'We're going through a reorganization'

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