Mergers and acquisitions have long been a popular growth strategy for companies seeking to expand into new markets or territories, gain a competitive edge, or acquire new technologies and competencies. Yet when it comes to increasing shareholder value, M&As have historically achieved mixed business results at best. While many factors contribute to determining whether a merger makes sense and will ultimately achieve desired financial results, brands are often a crucial incoming consideration and a determinant of ultimate post-M&A business performance.
Although mergers and acquisitions are most often viewed from a financial perspective, the keys to success often rely on less tangible factors than the bottom line. Because brand conveys the reason a business exists and how it intends to have an impact, it plays a pivotal role in uniting the merged entity and maximizing its value. A solid, well-defined brand architecture strategy can greatly improve the odds a company will be to keep the brand top of mind during the deal, value an acquisition appropriately, and have an effective plan in place to leverage the new brand assets.