M&A activity exploded by 30% in the first five months of this year, ushering in a period of significant corporate consolidation. Major deals, such as Chevron’s proposed $53 billion acquisition of Hess and Paramount’s planned merger with Skydance, underscore the magnitude of change and opportunity in today’s market. Yet, behind these high-profile transactions lies a sobering reality: up to 90% of M&A deals fail to achieve their investment goals.
Why do so many M&A transactions stumble? Often, it’s not the financials or the strategic vision that falters—it’s the critical aspects of integration and resource alignment. One of the most significant, yet overlooked, elements is the M&A driven rebrand. Whether that involves creating a unified or hybrid brand identity, effective implementation has significant influence on the overall success of the deal and achieving the overarching goals of M&A. Why? Because marketing plays a crucial role in unlocking hidden value and driving cost efficiencies. How consistently and credibly your brand shows up across channels is also a key factor in building trust and equity with employees, analysts, investors, customers, and future acquisitions.
The CMO opportunity
In B2B marketing, proving relevance and impact can feel like an uphill battle. Marketers often struggle to quantify the ROI of their initiatives, making it harder to position marketing as a value generator to the C-suite. However, M&A-driven rebrands present a unique and transformative opportunity.
Marketers should not wait for all regulatory hurdles to be resolved to start thinking about brand launch.
When done right, M&A rebrands can save millions and significantly impact your organization’s bottom line. For example, we recently helped our client Verizon with their rebrand in addition to a program where we reduced the cost of a rebrand implementation to just one-third of the original projection through strategic financial modeling and proactive planning. Similarly, we assisted a major recruiting firm in scenario modeling, and in developing a tangible rebrand ROI model based on real efficiencies in marketing and brand operations that recouped their rebrand investment in just two years. These successes were achieved by knowing what to look at, how to look at it, what the options are, and implementing efficiencies that enable our clients to do more for less and free up “found” money to reinvest elsewhere.
CMOs, this is when your leadership is needed the most. You can proactively drive positive ROI and redefine marketing’s value proposition. In my 25 years of M&A and brand experience, I’ve found that marketing leaders who demonstrate their capability to be operational leaders of change – beyond being creative marketers – can secure marketing’s place at the decision-making table. This involves not just managing the rebrand but leading it, finding not just the opportunities in the market, but the opportunities to literally do more, do better, less expensively and with great impact and influence —showing how marketing can turn potential pitfalls into platforms for growth.
Actionable steps for CMOs to drive successful M&A rebrands
To capitalize on the opportunity presented by M&A-driven rebrands or brand integrations, CMOs need a clear, actionable plan – and the financial data and analytics to drive alignment and success. Here are key steps to ensure your strategy supports the overall success of the merger or acquisition:
1. Start early: Your first move toward success.
Marketers should not wait for all regulatory hurdles to be resolved or data to become available to start thinking about brand launch and rollout. To truly make an impact in M&A, marketing leaders must put a smart implementation strategy in place even before the deal is official. Begin tallying branded assets and developing financial projections for your rebrand. Even more importantly, bring forward multiple options for how the conversion can happen, as this creates internal alignment and enables fiscally responsible brand decisions. Look at your brand’s activity and initiatives today, how you do it, who you do it with, what you spend on it, and the results. Doing so can uncover more tangible cost reduction and opportunities for improvement.
By coming prepared with a plan, marketers can ensure brand considerations are integrated into the overall M&A framework, avoiding the chaos of last-minute rebranding efforts.
Rebranding checklist | Over 120 branded touchpoints
Is your company in the midst of a rebrand or planning for one? Our free rebranding checklist is a great way to start to scope what is involved with a initiative like this.
2. Shift from ideas to impact: Building trust and credibility
In M&A, CMOs must not only focus on brand ideas and customer retention strategies but also prioritize finding efficiencies and savings within the deal. Identify costs and timelines for brand changes – legal/regulatory, marketing and digital, signage and branded environments, HR, IT, product, fleet and equipment, and everything in between. Prepare detailed strategies that highlight potential gains and market impact. By approaching your C-suite with a well-defined plan for reducing redundancies and costs, you will build trust and credibility from the jump, making marketing instrumental in the M&A process.
3. Declutter your closets: Preparing for brand integration
CMOs must lay the groundwork for a smooth rebrand integration early on. Think of it like cleaning and organizing your closets; while not essential for daily household activities, an organized space saves time and money in the long run. Similarly, optimizing your brand and marketing operations can lead to significant cost savings and operational efficiency. Many organizations enter M&A rebrands with the equivalent of cluttered closets, resulting in costly, inefficient rebrands and inconsistent brand expression. Conduct a branded asset audit to capture all existing branded assets. Not only will this provide a complete picture of your brand portfolio, but it will also uncover opportunities to consolidate, simplify and otherwise reduce the volume of assets you use and that will need to be converted, improving your speed to market and brand consistency.
4. Align and thrive: Driving unity across departments
A successful brand conversion requires the involvement of not just the marketing team, but every operational area within the organization. The key is to gather all essential information from business units, such as finance, HR, and IT, and use that to establish the right implementation framework that reflects their reality. Effective communication and collaboration are critical. By engaging early and often with key stakeholders, marketers can better understand the needs and concerns of other departments, address potential issues proactively, and gain buy-in. This alignment not only helps in executing the rebrand effectively but also leads to a new brand identity that resonates internally and externally.
5. Proving ROI: Focus on tangible results
Marketing leaders must build ROI models and payback scenarios that are grounded in objective data. This approach not only validates their strategic value but also provides the optionality that executive management craves. For instance, when faced with a proposed $60 million marketing program, executives might balk at the price tag. However, presenting a phased approach that achieves the same goals over a longer timeline for a fraction of the cost can ensure brand and marketing initiatives are approved and implemented.
By following these purposeful steps, CMOs will be well-positioned to unlock significant, unforeseen value in M&A driven rebrands. Embrace this opportunity to not only prove marketing’s worth, but also to redefine its strategic role in driving long-term business success.
