How Does A Strong Brand Strategy Make for A Successful Merger or Acquisition
Over time, many companies that have successfully built a brand in their segment decide to integrate with another booming business segment. The chosen form of that integration is often a merger and acquisition transaction. The statistics show that the stronger the brand strategy of either or both participants in the merger, the more likely it is that the merger or acquisition will be successful – here is why:
- More opportunities – the stronger the brand that participates in the merger and acquisition, the stronger the negotiation stance that can be taken and the more efficiently it can be leveraged in the negotiation phase;
- Proven professionalism – a successful merger is a complex transaction that requires lots of decisions that will influence the new entity’s short-term and long-term success. Some of the best business brokers in the industry confirm that companies that know how to build a successful brand are usually able to navigate the merger as well, without losing customers and employees and becoming stronger;
- A professional approach to internal conflict – most mergers involve at least a slight tension among employees. During the brand-building process, the professionalism learned can help ease that tension and make the transition smoother by assisting employees in finding their place and feeling valued in the new organization.