Branding and Mergers
Mergers & Acquisitions
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Branding as an engine for mergers and acquisitions
MetaDesign Unit 2601, Zhongyu Plaza A6 Gongti North Road 100027 Beijing +86·10·85 23 57 88 www.metadesign.cn Leibnizstraße 65 10629 Berlin +49·30·59 00 54·0 www.metadesign.de Grafenberger Allee 100 40237 Düsseldorf +49·211·69 07 87·0 www.metadesign.de 615 Battery Street San Francisco, CA 94111 +1·415·627 07 90 www.metadesign.com Klausstrasse 26 8008 Zürich +41·44·560 34·00 www.metadesign.ch
Mergers and acquisitions (M&A) are of increasing importance to business growth. The term M&A is not just a label—rather, it is becoming stronger as part of the agenda for successful business leadership. How can branding support and guide the transaction? How can the brand motivate employees, while at the same time be suitable for the people who represent external interests? The authors put forward the thesis that a strong brand creates lasting value for the enterprise and serves as the engine for the transaction process.
By Dr. Alexander Haldemann, Patricia Meyer, and Sean Ketchem (MetaDesign)
Many deals fail “Every other business deal destroys value. Only approximately every third transaction leads to a significant increase in value for the company.” There are many reasons why business deals fail. One reason is the undervaluing of ‘soft factors.’ The emphasis is primarily focused on “hard” factors such as acquisition costs, finances, legal considerations, IT, taxes, and so on. The “soft factors” are often left out of consideration. It’s frequently not realized that closing a successful deal is only possible when one works seriously with the company culture, leadership style and the corporate vision and values.
The reasons why business deals fail can be summarized as follows: • High costs • Synergy effects were overestimated • Cost orientation was one-sided • Loss of valuable staff • Insufficient cultural integration Communication gets neglected “Communication is only
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Branding as an engine for mergers and acquisitions
MetaDesign Unit 2601, Zhongyu Plaza A6 Gongti North Road 100027 Beijing +86·10·85 23 57 88 www.metadesign.cn Leibnizstraße 65 10629 Berlin +49·30·59 00 54·0 www.metadesign.de Grafenberger Allee 100 40237 Düsseldorf +49·211·69 07 87·0 www.metadesign.de 615 Battery Street San Francisco, CA 94111 +1·415·627 07 90 www.metadesign.com Klausstrasse 26 8008 Zürich +41·44·560 34·00 www.metadesign.ch
Mergers and acquisitions (M&A) are of increasing importance to business growth. The term M&A is not just a label—rather, it is becoming stronger as part of the agenda for successful business leadership. How can branding support and guide the transaction? How can the brand motivate employees, while at the same time be suitable for the people who represent external interests? The authors put forward the thesis that a strong brand creates lasting value for the enterprise and serves as the engine for the transaction process.
By Dr. Alexander Haldemann, Patricia Meyer, and Sean Ketchem (MetaDesign)
Many deals fail “Every other business deal destroys value. Only approximately every third transaction leads to a significant increase in value for the company.” There are many reasons why business deals fail. One reason is the undervaluing of ‘soft factors.’ The emphasis is primarily focused on “hard” factors such as acquisition costs, finances, legal considerations, IT, taxes, and so on. The “soft factors” are often left out of consideration. It’s frequently not realized that closing a successful deal is only possible when one works seriously with the company culture, leadership style and the corporate vision and values.
The reasons why business deals fail can be summarized as follows: • High costs • Synergy effects were overestimated • Cost orientation was one-sided • Loss of valuable staff • Insufficient cultural integration Communication gets neglected “Communication is only