For one week, let’s tally up all the unsolicited emails and voicemails offering to help us sell our business or buy another. We could even turn it into a contest—think “guess the number of jellybeans in the jar,” but with unrequested pitches instead of jellybeans. Closest guess wins!
With $796 billion US dollars worth of deals announced in the first quarter of 2024 (and forecasts showing the momentum to continue into 2025) thanks to Boomers and elder Gen X’ers stepping back, businesses are changing hands again after a slow 2023. Consolidation is touching every industry we know so, like us, even if you’re not in the market, you’re most likely feeling the ripple effects.
But if you are diving into the M&A waters, you’re already bracing yourself for a deluge of financials, LOIs, checklists, agreements, due diligence, and more. Rightly so—shoutout to our friends at Cray, Kaiser and Burke Law! But there’s one group you can’t forget to invite to the M&A table – before, during, and after a transaction. If you guessed “marketers,” congratulations—you’ve just won yourself that jar of jellybeans.
PRE-M&A
You haven’t started the M&A process yet. Or maybe buying another business or selling your own is just a thought still percolating at the “What if?” stage. No matter where you fall into the pre-M&A phase, it’s a good idea to take a look at the image your company is portraying to potential suitors or interesting acquisitions. When was the last time you Googled your own business or voyeured in on your sales process? If you’re not thrilled with what you see, it is never a bad time to tune up or overhaul your brand, especially if M&A activity is potentially in your future.
One ODEA client, Argianas & Associates, approached us for just that reason:
“My dad built the Argianas & Associates’ reputation one engagement at a time. Growing up, the business was as much a child as we were. When I came to the firm full time in 2017 I had about 15 years’ worth of dinner conversation knowledge. I knew we were really great at doing what we did but we needed to look the part and feel it internally as well, especially as we were beginning to think about succession,” said Alex Argianas, Vice President. “As a professional services firm, it would be our collective brain that would attract offers. But to engineer my dad and our team the best possible exit, I knew we needed to look and sound as smart to the outside world as we did to the clients who knew us. That is why our rebrand was so important. No one knocks on your door when you look like you are stuck in the 90’s, certainly not someone like JLL.”
As Alex mentioned, one of his main reasons for joining the Argianas & Associates team was to begin the success planning process for the firm that used to bear his last name. Once it became clear he did not want to take over the family business, Alex dug in and led the charge to rebuild the brand on the foundation that the company had been known and loved for by clients for over 30 years. That strategy paid off with JLL Valuation Advisory acquiring the Argianas & Associates team in 2023.
As in the case of Argianas & Associates, a well-positioned brand helps attract buyers just as it does customers. High brand equity tells suitors to expect market success, customer loyalty, and a strong reputation, which are always eye-catching assets. It also inspires confidence, both internal and external. Far beyond giving stakeholders warm fuzzies, it ensures that the brand will receive ongoing support throughout the process and reduces the risk of disruptions during the transition. Ah, now, that’s comforting.
DURING M&A
A well-positioned brand is as much of an asset during a valuation for M&A as real estate or a piece of machinery. It is factored in with hard data like sales and growth forecasts and via softer factors like brand awareness, customer loyalty, and image. The accounting and legal types may also consider a brand’s market position, the price premium it can charge based on that brand position, and the investments a company has made in marketing and brand-building as it rolls up its sleeves.
Remember that customer loyalty we mentioned a few paragraphs ago? A strong brand goes hand in hand with a loyal customer base (like Argianas & Associates’ 30-plus-year clients), which is key to keeping revenue steady. This loyalty isn’t just about customers coming back for more; it’s about the deep, emotional connection they have with the brand—built on trust, satisfaction, and positive experiences over time.
This kind of customer loyalty is a huge asset during M&A activity because losing customers is one of the biggest worries during these deals. Changes in ownership or company structure can make people uneasy (or even unhappy), so a strong brand with a devoted following helps keep that risk in check. Loyal customers are more likely to stick around through the transition, keeping revenue stable and putting hearts in the eyes of potential buyers.
POST-M&A
Buying another business or merging two businesses is a lot like a blended family: There’s a lot of building trust and managing change. However, one thing can symbolize reliability and continuity, making the process easier and helping align everyone with the new vision and goals. Want to guess what we’re talking about? Yes, it’s a brand.
Journey with us back to 2019, when talk of U. S. Steel acquiring ODEA client Big River Steel was a major topic across the industry. U. S. Steel, founded in 1901, has been a leading steel producer for decades. Big River Steel didn’t break ground until 2014 and compared to U. S. Steel’s more than one hundred years in the industry, was the new kid on the block. So, when Big River Steel was acquired in 2021 by U. S. Steel, the question was, will the Big River Steel brand go away?
Spoiler alert: it didn’t. The Big River Steel brand remained intact and while there are many reasons for that decision, part of it was because of the brand’s goodwill. Allowing the company to keep its well-known and differentiated reputation as a technology leader in the steel industry reassured customers and employees alike that they could continue to trust and support the company. It ensured a smoother transition and minimized disruptions during the integration process.
We’ve worked with other clients who absorbed their newly acquired company into their brand, and others who created entirely new organizations after purchasing multiple former competitors. In a post-M&A world, there is no one right answer. Much of the decision on brand structure should be based on where customer loyalty lives. In Big River Steel’s case, some buyers not sourcing from U.S. Steel were loyal customers, so keeping the name maintained those relationships.
For others, there are smart reasons to bring that loyalty under the acquiring company brand. When an acquisition extends markets or product offerings, creating a “halo effect” under one name gives the opportunity to sell more to customers of both companies. Instead of starting from square one, spending time and money trying to build recognition and trust with consumers who may not know your brand from a hole in the ground, you get a warm intro. When done with respect, the former brand’s reputation works like a seal of approval, encouraging customers to try new things without as much hesitation that might come with products from an unknown brand. This can lead to quicker adoption, stronger initial cross-sales, and more successful product launches.
And let’s never forget the power a strong brand has inside organizations, too. Post M&A, the alignment—or misalignment—of internal aspects like culture can be a real help or harm for the success of a merger or an acquisition. When two companies with different values, work environments, and ways of doing things come together, it can lead to friction, misunderstandings, and even the loss of key talent. But when you have a strong, clearly defined brand in place – like Big River Steel – it provides guide rails to help align the cultures, making integration smoother and reducing disruptions.
A well-defined brand serves as a North Star during the integration phase, offering a shared set of values and principles everyone can rally around. It helps create a unified vision for the future, ensuring everyone, from leadership to front-line employees, is on the same page. This shared purpose can help smooth over cultural differences, encourage collaboration, and speed up the process of bringing teams together.
A WHOLE NEW WORLD
In the M&A world, a company’s brand is more than just a logo or a name—it’s a key player that can strengthen or hinder a deal. A strong brand can boost a company’s value, smooth out the bumps during a merger or acquisition, and pave the way for long-term success. It helps keep things steady when everything’s changing, has the ability to open up new markets, and brings people from different company cultures together. So, don’t forget to invite us marketers to the M&A table. We might even bring jellybeans.