Mergers and acquisitions (M&A) typically involve significant financial analysis, market research, and strategic planning. However, beyond all these technical details, brand strategy shapes the ‘story’ behind the merger of two companies or the acquisition of one company by another. So, what steps are taken in brand strategy during the M&A process? Let’s clear our minds a bit and dive into what happens in this process.
The first step is understanding the brand value of both companies. It starts with questions like “Who are we?” and “How do customers perceive us?” The value of a brand lies not just in its logo or slogan but in its position in the customer’s mind.
Why are these two companies merging or why is one acquiring the other? Crafting this story is crucial to deliver a clear and understandable message to customers and stakeholders.
Will a new brand be created, or will one of the existing brands be retained? This decision usually depends on the companies’ values, target audiences, and market positions.
This part is fun! Which channels will be used to announce the merger or acquisition? Social media campaigns, press releases, events… the list goes on!
In this step, the operations, technologies, and yes, brands of the two companies are integrated. This ensures that a consistent message is conveyed to both internal (employees) and external (customers, suppliers) stakeholders.
Finally, the performance of the brand is continuously monitored post-merger or acquisition. This is done based on factors like brand awareness, customer response, and overall market feedback. And of course, continuous improvements are made.
This entire process is akin to two companies coming together and ‘getting married.’ Initially, both sides have concerns and expectations, but a good brand strategy turns this union into a successful and enduring ‘marriage.’ For companies, this means a stronger brand identity, a broader customer base, and, of course, more profits. However, it’s essential to remember that, just like in a marriage, mergers and acquisitions require constant effort and harmony.
