23
M&A Brand Diligence January 2013
M&A Brand DiligenceJ a n u a r y 2 0 1 3
2
Presentation Topics
3
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.
4
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
5
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.
6
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.
7
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
8
Answer:
Why Do Companies Overlook It?
9
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
10
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
11
Solution
• Translate data and insight into three primary directives:
Do we invest?
Do we continue to maintain?
Do we retire brand assets?
12
13
Brand Diligence: Methodology Review
14
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
15
Brand Diligence Methodology: Approach
• Disciplined• Practical • Iterative • Humanistic
• Outside-In & Inside-Out
• Holistic • Independen
t
16
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)
17
Brand Diligence Methodology: Metrics
(across brand attributes)
(overall composite/dedicated resources)
(favorability/loyaltytoward the brand)
(profile/longevity)
18
19
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
20
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
21
In Conclusion
22
Thank You800.284.2135 | [email protected] | tugboatbranding.com
