GReAT™ (Global Rebrand and Architecture Tracker) 2020
Brand Finance GReAT™ (Global Rebrand and Architecture Tracker) 2020
As business models are upended and previously untouchable companies become cheap acquisition targets, the COVID-19 crisis will bring about many opportunities for growth through acquisitions and mergers.
In fact, most recessions lead to at least a first year heavy with restructuring M&A activity and those acquisitions are often more successful than in normal times. However, during this period the stakes are also higher and M&A teams need to take more care than usual to deliver value.
In order to help them, Brand Finance has conducted a study of the financial effects of rebrands following mergers and acquisitions on a global scale – the first such study of its size.
By looking at all of the public acquisitions in the world above $500m in deal size in the last five years, we identified the key trends from 3,000 acquisitions – which account for 80% of the total value of public acquisitions in the world – to determine how to make sure your next brand architecture change delivers value.
Brand Finance’s analysis has found that the decision to rebrand carries less risk than not doing so. Rebranding should, therefore, be considered carefully before an M&A deal. Although the rewards are unlikely to be felt in the short to medium term, they are reaped in the long term. Consistently and careful planning is essential in any rebrand.
Alex Haigh, Valuation Director, Brand Finance