M&A rebranding: What brand leaders should do well before deal closure

Mergers and acquisitions offer significant opportunities for business growth and brand evolution. The period before the deal finalizes is critical for laying the groundwork for a successful rebranding strategy. This preparatory phase allows your organization to align marketing efforts with the combined company’s goals and establish a robust market presence from day one.

The opportunity that M&A presents

Whether merger, large acquisition, split, spin-off or other transactional event, marketing can and should play a key role beyond traditional sales, marketing, and communications.

These are unique moments in time – full of opportunity and risk.

The truth is that brand leaders are brought to the table too late in an M&A process – leaving money on the table, making the complex more complex than it needs to be, and putting the market and internal impact and success of the integration at risk.

Integration teams are focused on people, facilities, product/service portfolios, IT integrations, and other large synergies.

Often, no one is looking at:

• The unified branded asset conversion and implementation program
• The vast amount of branded assets and moving parts behind them
• the many opportunities for improvement, synergies, project cost efficiencies, and stakeholder success that can be gained by putting a brand conversion team in place well prior to deal closure

This elevates brand leaders as operational leaders of brand change, responsible for a completely different set of financial, operational, and market impact KPIs than they would normally hold – delivering value in ways that are often just left as missed opportunities, sub-optimal financial management, and confronting risks that could have been avoided.

The strategic timing of M&A rebranding

We often hear that it is too early in the deal transaction to start thinking about a rebrand, or that the ultimate strategic direction for the combined organizations is not yet defined.

Across the board, the CMOs we work with are all facing one, if not all, of the following truths:

• Getting your arms around the full scope of change early can be massively complex
• Understanding the options related to timing, prioritization, quality of branded assets, asset transition strategy, cost, and other factors as well as capitalizing on opportunities for improvement and risk mitigation requires experience that isn’t resident within the organization
• Resources still have their day jobs, and other priorities often take over causing lost momentum
• Expectations are high and maximizing impact internally and externally within the confines of the budgets available requires a holistic integrated plan that most marketing organizations can’t bridge into and lead across all operational areas of the company
• You know there are many ways to leverage this project to fix the pains and struggles you have faced, and improve efficiency and outcomes, but you don’t know what you don’t know

Despite common hesitations about the timing and direction of strategic decisions, beginning your rebranding efforts early is crucial.

Remember…

• It is never too soon in the deal cycle
• You do not need to know the brand strategy or need access to the other side
• Options drive alignment and fiscally responsible decision making
• Pre-planning improves engagement, impact, time to market, and reputation (with investors, employees, potential future acquisitions, etc.)
• Work with the Integration Management Office (IMO) and integrate their plans and timelines with brand integration/conversion for efficiency and effectiveness

Now is the ideal time to consider what would be required in a rebrand of one or both organizations. Here’s how to get ahead of the game so you can roll out your rebrand implementation the instant your deal is announced.

1. Scoping and understanding brand change

The complexity of merging two organizational identities requires a thorough understanding of both brands’ touchpoints and challenges. Conduct a comprehensive asset review so you have a detailed inventory of all branded touchpoints, from signage to digital assets, helps quantify the scale of the rebranding effort.

2. Craft your rebrand strategy

Having robust data and a flexible rebranding strategy are fundamental to addressing critical questions regarding the scope, timing, and costs associated with the rebrand. Prepare to answer key questions from stakeholders and align the rebrand with organizational objectives and market dynamics.

Implementing a new brand identity should be a phased process that is manageable and minimizes risk. Determine the key phases of your rebrand rollout, from internal communications to full market launch, and set realistic timelines for each stage to ensure a controlled and successful brand transition.

3. Budget for your rebrand

Rebranding can be costly, and financial planning is paramount. Developing various budget scenarios and planning for both capital expenditures and operational expenses across several fiscal years will help manage costs effectively. This financial foresight is crucial for gaining executive support and ensuring the availability of necessary funds.

4. Streamline brand operations

Before the deal closes, consider the integration of brand operations beyond mere visual identity changes. Assess opportunities for rationalizing and standardizing branded touchpoints.

5. Maintain transparency and buy-in

Effective communication with internal and external stakeholders throughout the rebranding process is essential. Regular updates and clear messaging help manage expectations and build advocacy.

Expert guidance: Partnering for brand implementation success

At BrandActive, we specialize in guiding companies through the complexities of M&A rebranding. We bridge the gap between strategic intent and operational execution, ensuring that your rebranding initiative is not just a change of logo, but a transformation that enhances your market position and operational efficiency.

Having supported 500 rebrands over the past 25+ years, we have gathered an unrivaled breadth of experience and data, which we use to ensure our clients’ rebrands are accurately budgeted, properly planned, obstacles anticipated and mitigated, and the entire change process is well executed.

“While we didn’t have the brand identity ready, we did have BrandActive helping us navigate every possible asset that would need to be part of the rebrand. It was enormously helpful for us to be able to look at every silo in this global company. [BrandActive] got us to three budget scenarios that we were able to put in front of our executive team.”
– Dana Gandsman, Vice President Enterprise Reputation at Pfizer