Wednesday, October 11, 2017

FIRST QUANTITATIVE M&A BRAND STUDY OF S&P GLOBAL 100 SHOWS 74 PERCENT REBRAND POST-ACQUISITION; SECTOR, DEAL SIZE, AND APPETITE KEY FACTORS

- The Landor M&A Brand Study is a first in providing an objective benchmark for the relationship between acquisitions and brand evolution.
- Shows specific acquirer trends by industry; consumer companies are less likely to change acquired brand, while energy and utilities sectors are fastest to rebrand.
- Mergers of equals result in rebrands nearly 40 percent of the time.
- More than half of all acquisitions are rebranded in the first three years of purchase.
- Highly acquisitive companies transition acquired brands more quickly than those who complete fewer transactions.
- Deal size matters: With deals under $1 billion, brands are changed 78 percent of the time, compared to 46 percent with transactions greater than $5 billion.

An infographic accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/3f5ace4b-13c5-461b-afff-24202c7e0ebc

NEW YORK, Oct 11 (Bernama-GLOBE NEWSWIRE) -- In 2015 and 2016, mergers and acquisitions accounted for more than $8 trillion of business value. But while extensive due diligence and planning is given to financials and other factors during the deal-making process, brand strategy considerations are often overlooked or only evaluated post-M&A. This is due, in part, to a lack of relevant data for analysis. Nevertheless, the success of the transaction—and the amount of value that it generates, both in the short and long term—is a result of deciding if, when, or how to transition an acquired brand.

To better equip CEOs, boards of directors, and legal and financial advisors with strategies for making acquisitions, Landor, a leading global brand strategy and design firm, conducted the first in-depth quantitative analysis of M&A activity. Leveraging machine learning, Landor analyzed the behavior of S&P Global 100 companies over the past 10 years. While 74 percent of all companies rebranded the acquired asset within the first seven years, the data reveals more nuanced approaches to rebranding and specific trends by sector.

http://mrem.bernama.com/viewsm.php?idm=30273

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