M&A: Merged brand clarity
A well-defined brand architecture strategy is essential in ensuring that mergers and acquisitions add shareholder and brand portfolio value
M&A has a terrible track record. The chance of an acquisition increasing shareholder value is as low as one in five. A solid brand architecture plan can help improve those odds. The better defined the brand architecture strategy, the more companies will be able to keep brand top of mind during the deal process, the greater the likelihood of valuing an acquisition appropriately and the better prepared the merged entity will be to implement a plan post-acquisition that will leverage the new brand assets.
Early, continued and focused consideration of brand during the deal can go a long way towards making sure that companies create value, rather than destroy it when they acquire companies and their brands. There are three brand-related factors that help create a perfect storm of problems post-acquisition that cannot be ignored.