Mergers and acquisition inevitably lead to branding concerns. For the target company, what the new brand says about them is crucial. Once an M&A deal is completed, the new company is born with its own identity. Branding plays a crucial role in merger and acquisition success. With close to 70 to 90 percent of mergers and acquisitions not creating any value,investor groups and portfolio companies should ignore branding at their own peril. New brand images carry a lot of weight. But as the David Barzilay management team holds, the right approach to brand architecture is situation based. There is no magic bullet when it comes to branding post acquisition. Many factors need to be considered.
The David Barzilay management team focuses on objectivity as there are considerations to take into account such as brand equity, deal thesis and the plan moving forward. Understanding the brand culture is the key to creating quantifiable and tangible value for businesses.
Focusing on the Culture
To check where a company is headed, cultural and organizational factors need to be studied to understand the nature of branding strategies. Listening to not just the C-suite management but the rank and file is important too. Active listening helps in understanding historical success aspects, possible cultural conflicts and the extent of the option sets.
Acquired companies with a strong mission and vision need to focus on retaining their strengths during the post acquisition branding phase.
Considering Brand Equity
For evaluating the options for brand strategies, the relative equity of every existing brand needs to be considered. According to the David Barzilay management mantra, what matters most is research in the qualitative and quantitative sense to test various factors in relation to customer and stakeholder perception. These factors include current brand perceptions, reasons for consumer loyalty or attrition, and brand elasticity or stretch as well. The risks and opportunities linked with choosing which brand to project should be considered.
Post the history and relative brand equities of different brands in the transaction, studying the future is equally important. Consider the reasons behind the acquisition and where the gains from combining strengths will show The brand most valuable to joint organizations is the key here. Responding to these critical queries sheds light on which brand identity option is more valuable as the merged entity moves ahead.
For instance, if the deal thesis is linked to market reach, legacy identities and regional references may not work for the target company. Front line brands need to stay intact. In this context, the David Barzilay management team always focuses on creating value.
Market Dynamics That Come into Play
The final aspect that needs to be considered is the market served. Fundamental shifts or changes in categories can add value to the branding strategy. The merger needs to serve one better, not worse. Brands need to effectively transition and for this, it is essential to understand what the markets want.
Migration Over Time
Another aspect to consider is the necessity to make the brand transition gradually in a phased manner so that there is migration across time. This gives target companies breathing space and adequate time for initiating the right type of processes. Brand names and brand choices are critical and what seems easy may not be right.
The David Barzilay management team focuses on making well informed decisions and choosing a strategy that offers most value. When one becomes overwhelmed with the process, merger and acquisition branding experts can ensure that acquisition partners settle on a branding strategy that works to their mutual benefit. Your brand says a lot about your target company. It needs to be carefully crafted to offer portfolio companies the best platform to move forward.
Identity and Strengths
The critical brand architecture decision revolves around identity specifically the logo, name and core message of the target company. The right approach to branding is based on the nature of the business strategies and the present brand equities. The brand in question should be clearly differentiated and designed to appeal to distinct client segments. Investor groups need to make their acquisition partners feel valued and integration matters a lot. Positive brand equity only transfers from the investor group to the portfolio company when operational synergies are realized. The rationale behind M&A deals should include boosting brand strength. Brand identity assets also need to be integrated into the new merged corporate identity.
It is important to remember that fusion approaches to brand architecture are oriented towards risk management rather than activating potential. They prevent client and team alienation. The brand of the target company needs to be elevated and considered in terms of its size, brand potential and flaws along with other factors. The lead company ensures that its visual identity and positive brand equity flows to the acquired company.
Ultimately, the IBID Group focuses on clear and strong communication regarding brand platform and direction for efficiency. Certain stakeholder groups need to be considered such as partners, customers and employees, so brand building is not missed out on and the transition phase is seamless.
Merger and acquisitions focus on developing new brands. The focus is on positive transformation and equity of each brand is considered for a shared, strong and innovative future. Creating a new brand costs time, money and effort. But branding post an acquisition also comes with its fair share of risks. Protection of brand equity and prevention of customer alienation are the core considerations. The ability to create a fresh brand that harnesses innovation comes from knowing how to give brand building a strategic direction.
The true potential of a merger and acquisition deal can only be realized if comprehensive and correct brand architecture choices and effective strategy implementation are focused on. It is crucial for investors, management and the deal team to understand and evaluate all aspects for marketing and branding success. Understanding the options is as important as considering all other factors such as implementation of branding strategies and decision-making regarding brand equity. For the IBID Group, experience in managing different brand identities and successful acquisitions have created a rich accumulation of experience and opened the door to limitless and successful expansion.