3 ways to evaluate your brand strength FOR M&A

Brand Strategy Workshop lead by David Barnum for Assa Abloy

Preface: Why you should trust us.

We've had the opportunity over the last few decades to work with both Private Equity groups deploying a "roll-up strategy" and independent businesses looking to grow through acquisition.  In almost every case, exceptional diligence was conducted on the financial and operational strength of the target acquisition, but a thorough analysis of brand reputation, value and “fit” was frequently an afterthought, particularly for B2B companies. 

In our view, making an objective brand evaluation part of your acquisition strategy is critical. 

A strong brand provides numerous competitive advantages such as lower cost of customer acquisition, support for premium pricing, improved customer retention, and more. But objectively evaluating a brand can be tricky – especially when acquiring smaller companies. The key is to move beyond internal opinions and out into the market to understand customer attitudes, awareness, and competitive landscape.  

Here are three steps you can take to get actionable insights on brand value.

1. Check Public Data

Even if internal marketing data is minimal or inconsistent on metrics such as keyword rankings, search rankings, and social engagement, data can still be gathered from a variety of external sources. Start with Google Analytics and primary social account data and expand out from there. Are any industry thought leaders following or commenting on branded content? Is the social media presence robust across relevant platforms?  Is the brand frequently mentioned in industry media?

In addition, services such as Spyfu and Hootsuite offer free versions that can give you a better understanding of audience engagement and perceptions.

Our Brand Culture Workshop with Patterson Park Public Charter School

2. Conduct Surveys, internally and externally

As a colleague of mine liked to say, "It's not what you say about your brand that matters; it's what your customers say."  The leadership team of the company you may acquire is likely to have a lot of "hometown pride" about the strength of their brand, so it's essential to gather unbiased data. Understanding what attributes and positive feelings customers associate with a brand is integral to its long-term value. To start, simple interviews with key customers, suppliers, and staff can yield significant insights and subjective data. Broader, more objective studies can be done inexpensively through social channels and with services like Survey Monkey. 

3. Measure Brand Maturity (brand audit).

A brand is the sum total of experiences that define how it is recognized and remembered. Knowing who you are and communicating your values and value to your audiences consistently is what makes a truly powerful brand. We have developed a unique model using a blend of analytical and creative tools that help leaders to rapidly evaluate and measure brand strength. The process incorporates many aspects of a traditional brand audit (review of standards, assets, etc), but also takes a deep dive into fundamental, strategic brand elements. 

These steps can help you gain a better understanding of the total value of an acquisition beyond balance sheets and capital assets. Knowing your brand’s value or the brand you are acquiring can give you a advantage in developing talent retention, brand integration, or customer experience strategies.

Please reach out if you need more help in evaluating a potential or recently acquired brands.