President and CEO of BrandExtract, overseeing corporate and logo strategy.
After Covid-19, mergers and acquisitions in the U. S. But it’s not the first time They have dropped by 83% compared to last year, a minimum of five years. However, even with the economic uncertainty looming in the fourth quarter and 2021, opportunistic corporations deserve to plan forward and in the short, medium and long term. Forward consolidations to expand your business and expand into new markets. On the other hand, defensive corporations would possibly merge to achieve some stability and improve liquidity due to economic uncertainty.
“If you have capital, interest rates are low, now is the time to become a commercial buyer,” says Phil Colaco, CEO of Deloitte Corporate Finance LLC and global leader of Deloitte Corporate Finance Advisory. “I would say that this may be just one of the greatest wealth creation opportunities of our lives over the next 12 to 18 months. “
But many executives make a critical mistake before and during mergers and acquisitions, which can cause them to fail. They highlight synergies (market value, trading strategy and monetary adequacy) regardless of logo capital and operational and cultural alignment. I think that’s one of the reasons between 70% and 90% of mergers fail.
My company has worked on a number of mergers and acquisitions. Here are my tips for this mistake.
Brand before merger and acquisition
A logo is an advertising asset. Therefore, you will need to take this into account and measure it in the merger and acquisition process. Before a merger, a company will have to perceive the price of its acquisition goal and have a plan on how to integrate the logo into its own.
Today, logo capital plays an even more important role in the target business market. Colaco says: “Many buyers buy businesses, not only because of the flow of money, but because of the quality of management, the quality of the equipment, and I think this will continue. “
This can also be the price. Possibly there would be conditions where the logo price informs the overall monetary valuation during negotiations (and the war of words on valuation is another main explanation for why M&A transactions fail, according to McKinsey.
For example, one logo would possibly be more trivialized and another possibly more premium. Possibly it would be more of a product logo than a corporate logo. Part of the evaluation will involve reconciling these differences and understanding the price of people. , relationships and loyalty of visitors, all of them essential in the process of evaluation and decision making.
Unleash logo search
There is a quantitative and qualitative technique for the evaluation process and studies, quality should take into account the mission, vision and values (MVV) of each logo, as well as its existing heritage, equity and compatibility systems. with executives, workers, existing and past clients. Quantitative technique reads about the dating between monetary knowledge, the value of the logo, such as the sentiment of visitors and workers, and sales knowledge to perceive expansion trends. These studies can help identify your long-term logo strategy and influence your trading strategy. This may involve simply keeping the two logos (or more) separate, grouping them in combination, or creating a new logo, all viable options.
There are several vital questions to consider in the process: which logo will constitute the most productive corporate according to the direction of the market ?, will the result be a space with logo or a space with logo?Will the new entity adopt a new logo?Finally, will the company change its name, retain existing names, or keep multiple logos on the market?Consider that problems based on them have an effect on visitors’ belief and synergy.
The procedure also allows us to notice the essence of the new entity and expand the alignment and property. What is the goal and story that will resonate with your stakeholders?Comprehensive logo research allows corporations to expand a message and position them to fulfill their logo promises and achieve the expected synergies of any merger and acquisition transaction.
Cultural integration is critical
For leadership, it’s a key alignment factor. According to McKinsey
Management groups can deal with cultural differences with some strategies. First, engage key stakeholders in any of the organizations to expand a sense of ownership and acceptance. Start by identifying your champions and opponents. Both can exert an abundant influence, positive or negative, on the integration process.
We have also learned over the years that asking questions outdoors can create new opportunities. Establishing a framework for internal discussion will tame a sense of belonging by launching the new brand.
Finally, expand a robust internal communication strategy to manage expectations and identify two-way communication channels. We have noticed that the number of desertions doubles compared to classic averages in such transactions due to slow, unclear or one-way communications. not just being outgoing. Create a procedure to pay attention to considerations and feedback at every grade in your organization. Be direct, fair and consistent with your communications.
The bottom line: the trading strategy and the logo strategy are linked in detail. Long before the acquisition was announced, executives have a transparent concept of how the two corporations articulate operationally and culturally.
Incorporating the logo into the process
A merger is made and improves the expansion of a company’s customers and creates a price for shareholders. You can position a company to outperform, outperform and outperform its competitors. But studies and branding should be part of their procedure to achieve some alignment and positive evolution.
Synergies below the surface of the material. Go beyond monetary measures and deepen your attention to capital and logo culture to the possibilities of successful consolidation and long-term growth.
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