Brands off the agenda again

Australian companies are once again on the hunt for...

– tasty acquisitions now the war chest has been replenished, or
– mergers with like minded businesses intent on the 'bigger is better' model.

They're looking for acquisitions that can fast track new growth in recovering markets. Sadly we're not seeing much evidence that brand is being considered as part of

a/. the due-diligence processes preceding negotiations or
b/. the integration activities that follow a merger

They're paying big bucks to expensive advisors to get the deal across the line. Why don't they invest some money and time making sure those valuable brands and the people attached to them are going to survive the journey?

Enter marketing department stage left. The good old 'we can do it all' marketing team are once again thrown headlong into the fray to manage the brand through the latter stages of the merger or acquisition, usually when it's too late, usually headed by people with little experience or little desire to be dragged away from their new designs for a multi-page pop-up direct mail piece.

Without a doubt customer brand allegiances influence M&A deals. Tamper with them at your peril. Customer and employee perceptions of the brands play a huge role in determining the smooth transition of the deal and the ultimate viability of your post-deal branding strategy. Ask them about it before it's too late.

Surely acquirers would have done their branding homework before approaching the target? Surely they would have included robust research to determine brand value and the true drivers of brand equity. Did they look beyond this to determine what role the brands might play in driving long-term business outcomes and the ultimate success of the deal?

I hope so!

Tony Heywood is a Fellow of the Design Institute of Australia, founder of Heywood Innovation in Sydney and London with affiliates in Melbourne, Gold Coast, Singapore and Mumbai.