In the world of acquisitions, buyers typically prefer pre-vetted companies. The vetting process identifies opportunities with true potential, allowing buyers to launch into the process with a high degree of confidence that their efforts won’t be a waste of time.
While a number of players can carry out the vetting process, companies looking to get acquired will often initiate it themselves. The company, working with an investment banker or a consultant specializing in mergers and acquisitions, can organize key documents, run projections and address any issues that might be a turn-off to a buyer. This “packaging” process is designed to attract buyers by presenting a company that is buttoned up and poised for growth.
To maximize the impact of the process, companies should take steps that allow them to present a pre-vetted reputation. In other words, the company’s founders should not be the only ones with good things to say about the company. A company with a solid “public record” will be seen by investors as one whose brand has been evaluated by consumers, influencers and industry peers and found to be reliable.
Pre-vetted reputations are built upon public relations. Consequently, company acquisition strategies must include steps to maximize brand reputation through effective M&A PR.
The reputational characteristics that drive acquisition success
There are several reputational characteristics that will stand out to potential buyers as signs of a solid investment opportunity. A strong market position is a key one. Companies that are market leaders have clear advantages and increase the reputation of the new company they will be joining.
A loyal customer base is another good quality. Customer loyalty shows a company has a reputation for delivering relevant and reliable products and services. A loyal customer base is just as valuable to a potential buyer as the company’s physical assets.
Differentiation can be a key attractor for buyers. Companies with something unique, including anything from unique intellectual property to a celebrated leadership team, have a competitive advantage. To a buyer, differentiation often translates to lower risk.
A strong brand reputation can also indicate that a company is well-positioned for new market growth, suggesting the potential for strong ROI. When consumers trust a company’s current offerings, they will need less persuading to get on board with products or services launched in an adjacent market.
The goals achieved through PR, from media coverage to brand visibility to stakeholder relations, all have a positive impact on the reputational characteristics mentioned above. Including PR work in the vetting process solidifies a company’s reputation, adding value to its current operations and creating a framework to support future growth.
The PR strategy that builds a strong reputation
Generally, PR is focused on brand building. Pitching and press releases attract media attention and earn companies exposure that spotlights the unique value they bring to consumers, investors and the industry.
Companies pursuing a merger or acquisition will definitely benefit from the ongoing PR work they’ve done. However, if they want to take advantage of brand valuation PR, companies should shift their focus to PR tactics that will strengthen their reputations and showcase the components that are most valuable to a buyer or acquiring company.
Positioning key leaders within the company as thought leaders within the industry is a key element of PR for acquisition and can involve seeking out speaking engagements at key industry conferences or appearances on top-rated podcasts. At the very least, founders should begin adding thought leadership posts to their LinkedIn profiles.
Press releases can be used to showcase differentiation. A press release announcing a new product launch, a strategic hire or the integration of technology that boosts efficiency can all help to position the company as an innovator focused on growth. Press releases highlighting milestones, such as launching an innovative new product or B2B solution, will help position the company as a market leader.
Highlighting customer success stories can also be an effective element of PR for acquisition, as well as bolstering pre-exit marketing. Showing how consumers already embrace the company’s products or services paints a picture of the type of synergy a strategic acquisition could create.
It’s important to note that an effective M&A PR campaign can’t be a back-burner item. The best results will be achieved by establishing a PR team that can prioritize the external communications that will drive the campaign. Bringing PR professionals on board or hiring a PR agency could be a wise investment.
A dedicated PR team can also focus on managing internal communications throughout the process. A well-crafted in-house communication strategy can make or break the acquisition process. PR for acquisition gives employees the information they need to stay focused and engaged, while being careful not to divulge anything that could derail the acquisition process.
The acquisition press release continues to add value
When an acquisition seems imminent, companies should begin drafting an acquisition press release. An acquisition announcement adds value to the purchase by communicating to consumers and other shareholders the thinking behind the acquisition and the value it adds to the acquiring company.
An M&A press release should be drafted with input from both companies involved, ideally including quotes from key leaders stating the strategic goals of the acquisition. The perfect press release will build confidence in the new company by communicating how it will better serve consumer needs by adding new capabilities.
PR is a critical part of the acquisition process because it builds trust. It shows potential buyers that the company is known for growth and innovation. It also addresses employee concerns, allowing for strong, continual growth throughout the acquisition process. In a season that can involve a lot of uncertainties, PR empowers companies to craft a narrative that drives them toward their acquisition goals.
