Acquisitions and mergers represent an extremely vulnerable time for any brand – and still, way too many B2B companies neglect their brand in the process. The procedure kills countless brands but if you navigate the process intelligently, it can result in a stronger brand and a strengthened position in the market.
For executives who want to accomplish higher growth, mergers and acquisitions are a clear-cut tool to capture new market shares and realize growth goals. But it’s super hard – with good reason. Way too many mergers fall short or fail entirely. According to Harvard Business Review, 70-90% of all mergers fail, which is equally frightening and discouraging – and the implications are worst for the brands involved.
To put it briefly, mergers are a slaughterhouse for brands. Too few companies are able to guide their brands unscathed through the process. And the result is poorer brand recognition and a weakened market position.
B2B brands suffer especially during mergers and acquisitions. The poor focus on branding in B2B is clear during M&A and the companies consequently underestimate their brand’s significance.
Understand the brand mathematics
As a rule of thumb, mergers and acquisitions are based on analysis of business advantages, market conditions, and operation synergies. In other words, it’s a process dominated by Excel fanatics without the slightest understanding of, or interest in, branding. And this is the core of the issue.