Increase your odds of M&A success with brand architecture (Landor Perspectives 2011)
After a recession-induced lull, merger and acquisition activity is picking up once again. Many businesses are sitting on mountains of cash—Bloomberg estimates that the top 1,000 companies worldwide have almost $3 trillion among them—and they're in "use it or lose it" mode. The temptation to acquire other brands to speed growth will be tough to resist.
Despite its continuing popularity, M&A has a terrible track record. Reviews find that the chance of an acquisition increasing shareholder value is no better than a flip of the coin.1
A solid brand architecture plan can greatly improve these odds. The better defined the brand architecture strategy, the more likely a company will be to keep brand top of mind during the deal, value an acquisition appropriately, and have an effective plan in place to leverage the new brand assets.