Rebranding for Acquisition: A Hidden Multiplier

We tend to work with two types of entrepreneurs — those who have built and optimized their business for a sale from the outset and those who haven’t given much thought to selling their business. 

Regardless of which category you fall into, your business may eventually attract the attention of a worthwhile buyer. This could happen tomorrow or five years from now, but it’s best to be ready.

In addition to the steps you’d expect to take before a sale – a proper valuation, leveling-up your advisors, and prepping for due diligence – your brand may also require an upgrade.

WHY DOES YOUR BRAND MATTER TO A POTENTIAL BUYER?

The state of your brand is a reflection of the state of your business. If your brand is distinct, memorable, and clearly connects with your customers, it will also create confidence for a prospective buyer or investor.

One of my favorite examples of a transformational rebrand is RXBar. Founders Peter Rahal and Jared Smith describe the initial branding, created in PowerPoint, as “ugly,” and they extoll the impact of the 2015 redesign in this fantastic profile in Entrepreneur. They would go on to sell the company to Kellogg for $600 million in 2017.

Put simply, a beautifully wrapped brand can make your product — and your business — easier to sell. The less time and money a buyer will need to spend to get you into shape, the more they will be willing to pay.

HOW DO YOU KNOW IF YOUR BRAND IS IN GOOD SHAPE?

Ask the experts. They can tell you if your brand is confusing or dated or difficult to deploy. Specifically, a professional branding consultant or agency can help you audit your brand elements (like your name, messaging, visual identity, packaging, etc.) to identify bright spots and opportunities for improvement. 

Even small tweaks can make a big difference when you’re rebranding for acquisition. For example, if your name has strong equity and is well-protected from competitors and your messaging resonates with your customers, you can focus on improving your visuals.

WHICH BRAND IMPROVEMENTS WILL MAKE THE BIGGEST DIFFERENCE?

Clear positioning and fearless creativity are the critical components of an effective rebrand. We’ve seen these work together in surprising ways to hold a buyer’s attention — like this brand culture video we created starring puppets (yes, puppets) for LUNA Language Services. For LUNA, we focused on the people behind the brand. Depending on your own differentiators, you might instead illustrate your process or share a customer’s story to succinctly communicate your brand’s unique value. 

Of course, one creative deliverable does not make an entire brand. Strong brands are robust and layered. With every well-told story and creative experience, your brand will become more appealing —  and more valuable.

Your brand is a reflection of your business. Strategically rebranding for acquisition can act as a ‘hidden multiplier’ during an eventual sale.