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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Thank You800.284.2135 | sheryl@tugboatbranding.com | tugboatbranding.com