Branding Through Mergers and Acquisitions

In our work with leaders navigating mergers and acquisitions, we’ve learned two things: 

First, it’s easy (and all too common) to overlook the effects of a merger on the current and future brands. Second, leaders who approach their brands as assets —and who strategize to maximize their value — stand to build competitive muscle, boost customer confidence, and realize more of the potential in the transaction.

Here, then, are some important considerations for owners and executives engaged in M&A due diligence:

• How do customers perceive the current brands?
   
• Will you integrate the brands or keep them separate?
   
• Which is more appropriate: a “house of brands” or a “branded house”? (If you’re not sure of the difference, give us a call.)
   
• If you choose to create a new entity, what does that process look like?
   
• How will current and new customers react or respond to the merger/acquisition?
   
• How will the competition respond, and how do your new offerings stack up?
• How will you guide employees through a potentially confusing and stressful change?
• Apart from the bottom line, what’s the driving reason for this transaction?
• What’s the story, and how will you share it with internal and external stakeholders?

Again, if you think of brands as assets, then you must assess their current and potential value. Brands have equity, whether positive or negative. Evaluating brand equity involves studying
your customers’ connection to the organization and its offerings. Are they buying the product, the feeling it creates, or a combination of both?

If mergers and acquisitions are a part of your ongoing business strategy, then you may want to establish a “playbook” outlining the systems and processes that can ensure a consistently
smooth and effective transition.

Mergers and acquisitions can be an effective and positive growth strategy, but consumers and employees don’t always share that perspective. To them, it’s a change — and change isn’t always understood. For leaders involved in a merger or acquisition, the challenge is to visualize the desired outcome, create a strategy — and then communicate, communicate, communicate. 

The team at MasonBaronet has helped leaders through every stage of the M&A process. Give us a call about your situation, and see what can happen when stakeholders embrace your newly formed or recently acquired brand.