Brand management during a merger – top tips

Statistics show that the majority of mergers erode shareholder value due to the poor integration of the two businesses.

Of course, there’s a great deal to think about when preparing for a merger: due-diligence, financial planning, harmonising technology, and aligning working practices.

Yet all too often, the Cinderella among this activity is brand management. The truth is that if you don’t get this right, you will lose out on a massive opportunity to capitalise on marketing your new, enlarged business. Worse still, you run the risk of confusing both your customers and suppliers.

Here are our top four tips:

1. Have a plan

Brand identity is everywhere, from your corporate stationery, to your website and from social media channels to your premises.

So fresh branding needs to be consistently reflected through all these channels. To achieve this, you should formulate a clear plan to coordinate the changes, and make sure it is in place well ahead of the merger date. Playing catch-up is the very last thing you should be doing in the ‘first 100 days’ post-merger.

2. Is there a need for a transitional brand?

Mergers often involve a transitional brand, such as ‘ABC Group, incorporating XYZ Ltd’. Clearly this is a useful communications tool as it informs both companies’ stakeholders that the merger has taken place and the expanded group is very much open for business.

Eventually, the XYZ element will be discreetly dropped. But in the meantime, it is crucial to ensure you have the materials available to avoid confusion among the two sets of customers and suppliers. At a time when continuity is the watchword, uncertainty can be especially damaging.

3. Time for a blank sheet of paper?

A merger can be a perfect springboard to reinvent your brand identity. Ask yourself objectively if you want to stick with one of the two brands, or whether the merger could be an opportunity to create something entirely different.

Evaluate the strengths and weaknesses of your brands. Think about the merits of a ‘perception audit’ to help you identify the signals your brand is sending out. Also keep in mind that your customer-profile may have changed since you last rebranded, so ensure your brand identity resonates in the right areas.

4. Have a ‘D-Day’ for old branded materials

Hanging onto old brand materials to save money or avoid waste is a high risk strategy.

Be ruthless. Set a date when all the old stuff will be unilaterally consigned to the recycling bin. Allowing brand communications to get distorted by mixing branded materials will backfire by projecting inconsistency at exactly the time when the opposite is needed.

Let us help

Our specialist advisers can help you make the most profitable and productive choices on post-merger brand management, contact us to find out more.