M&A Brand Diligence
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Transcript of M&A Brand Diligence
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M&A Brand DiligenceJ a n u a r y 2 0 1 3
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Presentation Topics
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What is Brand Diligence?
• Brand diligence is a formal process that allows an organization to assess another organization’s brand assets. It examines the risks and rewards associated with managing brand assets post M&A.
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Why It Matters
1. Brands are critical strategic business assets 2. Higher risk for costly mistakes post M&A 3. Research shows that outperformers recognize
brand & corporate character as an invaluable tool
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A Robust Indicator
• The corporate brand is the single greatest indicator of what an organization values: its culture, leadership style and how it operates and performs on a day-to-day level.
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Outperformers Build Momentum
• A recent study by IBM revealed that CMOs who “outperform” view having a clear corporate brand character as fundamental to their company’s success.
• They recognize that what their company believes and how it subsequently behaves are as important as to what it sells.
• These CMOs make it their job to make sure that management and employees exemplify and live the brand.
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The Distinction
• Qualitative & quantitative • Comprehensive review of
tangible and intangible assets:– Legal review – Market review – Competitive review – Brand image review – Branded organization review
Brand Diligence• Heavily quantitative • Comprehensive financial examination:
– Assess costs & risks– Identify valuation opportunities– Assess management
Due Diligence
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Answer:
Why Do Companies Overlook It?
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The Omission Challenge
• By underestimating the role of brand during M&A, an organization overlooks significant cues for success and failure.
– Slower integration momentum – Heightens political jockeying – Drains organizational morale – Violates the #1 rule for maintaining brand
performance – protect the customer– Increase probability for misguided decisions
by executives
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Benefits Facilitate Stronger Performance
1. Expedite the integration process
2. Use resources more effectively 3. Sharpen executive acumen 4. Leads to better long-term
decision making 5. Optimize revenue goals more
quickly
6. Decrease the overall cost, fatigue and churn associated with post-merger integration
7. Gain immediate foothold on brand assets
8. Facilitates brand and business alignment 9. Develop smoother brand migrations
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Solution
• Translate data and insight into three primary directives:
Do we invest?
Do we continue to maintain?
Do we retire brand assets?
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Brand Diligence: Methodology Review
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There are two roles for the corporate brand to play during M&A; either as a lightening rod for organizational conflict and disruption or as bridge to synergy and high performance.
Philosophy
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Brand Diligence Methodology: Approach
• Disciplined• Practical • Iterative • Humanistic
• Outside-In & Inside-Out
• Holistic • Independen
t
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Brand Diligence Methodology: Process
Corporate, Strategic, Product & Service Brands
Analyze In-House Intelligence
One-to-One Interviews**
Tugboat Brand Independent
Audit
Legal Review
Competitive Review *
Market Review *
Brand Story/Image Review
Business Strategy Review
Brand Organization Review
*Only if there is an gap in substantiated in-house data. | **(Executives, Employees, Customers,
Stakeholders)
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Brand Diligence Methodology: Metrics
(across brand attributes)
(overall composite/dedicated resources)
(favorability/loyaltytoward the brand)
(profile/longevity)
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Why Tugboat
Experienced • Been operating as an independent firm since 2001. Each one of our
team members is a seasoned pro in their respective field of expertise.
Proven • Blue chip client base with thorny complexity. Emerson,
BlackBaud, Harris, Symmetricom, Wonderlic.
Value • Agile and cost effective business model
Results-Driven • Heavily focused on tying brand to business performance
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Tugboat Services
Brand Diligence Brand Architecture & Portfolio Management Brand Purpose Business Alignment Predictive Analytics (coming soon!)
Corporate Identity Product IdentityName DevelopmentBrand Guidelines
Marcom DevelopmentCollateral Advertising Campaigns Copywriting PR Messaging Corporate CommunicationsVideo
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In Conclusion
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