The Unifying Power of a Corporate Brand
A common challenge for many firms post-merger is a lack of knowledge about newly acquired products and services. Here’s how to overcome this major impediment to successful synergies.
According to the Harvard Business Review, an inability to properly define and activate the going-forward brand t is a key reason that between 70 and 90 percent of mergers and acquisitions fail. One study found that companies that created a new brand following a merger or acquisition outperformed market expectations, while those that proceeded with business as usual or operated under one of the legacy brands significantly underperformed.
A strong new brand, built on a robust foundation of positioning and messaging, can translate the financial strategy behind a merger into a compelling value proposition for customers, unite the merged cultures under one umbrella, and give all key audiences a “reason to believe” that the new entity will benefit them.
A common challenge for many firms post-merger is a lack of knowledge about newly acquired products and services. Here’s how to overcome this major impediment to successful synergies.
Following a merger or acquisition, a brand empowers a business to translate the strong financial and strategic rationale of the transaction into a value proposition for employees and customers. Both during and after the deal, decision makers should consider how they can leverage brand to create value.
Mergers and acquisitions are most often viewed from a financial perspective. However, as brand strategists, we have seen firsthand that success often relies on less tangible factors, chiefly a rationalized workforce that understands the how’s and the why’s of the merger – and what it means for customers. In other words, success in M&A requires a hard look at brand.