NASDAQ OMX

First quantitative M&A brand study of S&P Global 100 shows 74 percent rebrand post-acquisition; sector, deal size, and appetite key factors

Del
  • 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. 10, 2017 (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.

Acquirers within an industry behave similarly

The Landor M&A Brand Study uncovered distinct patterns by industry. More than any other sector, consumer companies (defined as consumer discretionary and consumer retail) are more likely to retain their acquired brands. Just under 60 percent of consumer companies rebrand, indicating that they want to retain the equity of their acquired brands and a portfolio of brands is a model this vertical finds successful. Coca-Cola's acquisition of the organic tea company Honest Tea is an example. The deal was completed in 2011, and the parent company has not made any significant branding changes.

The IT, financial services, health care, and energy sectors display the highest likelihood of changing an acquired brand, transitioning between 75 percent and 80 percent of acquisitions. These industries place more value on the acquirer than the acquired brand; the numbers demonstrate a propensity to start transitioning a brand as soon as the deal closes. Capital One completed its acquisition of ING Direct in February 2012 and soon after rebranded it Capital One 360. IBM has been on an acquisition spree over the past year, buying companies such as Clearleap, now known as IBM Cloud Video.

The energy and utilities sector is quickest to rebrand acquired companies, with 60 percent of brands changed within 12 months, according to the study. IT companies exhibit less urgency, transitioning half of acquired brands within the first year and 76 percent by year seven. Health care and financial services companies show similar behavior. Interestingly, telecommunications and industrial companies are slowest to change acquired brands, with a respective 8 percent and 24 percent of acquisitions transitioned within the first 12 months.

"In 2016, business leaders made thousands of decisions about what to do with acquired brands-but how do they really know which decisions are best? Our study clearly shows that different industries do different things. Being able to share quantitative trend data by sector over the last decade will finally enable CEOs, boards, and advisors to make more informed decisions about brand strategy when considering M&A," notes Lois Jacobs, CEO of Landor. "Whether a company is deciding if it should keep or divest a brand, how quickly to transition an acquired brand, or how to preserve brand equity, overlooking strategic brand decisions during the M&A process can negatively impact brand value and leave money on the table."

"There is no single, cookie-cutter approach to brand strategy during a merger or acquisition," says Louis Sciullo, executive director of financial services at Landor. "The ideal approach to brand acquisition strategy comes from a thorough understanding of the unique combination of factors specific to the acquiring and target companies. Now that real data is available, we can benchmark how individual companies and sectors treat M&A brand decisions-and layer that data into custom analyses bespoke to specific companies and deals."

Deal size, type, and volume correlate with likelihood of rebranding

Generally, the larger the transaction, the longer the transition time. Mergers of equals result in brand transitions a surprising 38 percent of the time. In theory, a merger of equals should be a simple conflation of the two existing brand names; for example, Alcatel-Lucent, DaimlerChrysler, and MillerCoors. But the fact that nearly 40 percent of mergers opt to rebrand reflects a desire to create a new, future-focused source of value-from the brand as well as the business.

A smaller deal is highly indicative of the likelihood of changing the acquired brand: 78 percent of transactions under $99 million were rebranded compared to only 46 percent of transactions over $5 billion. Highly acquisitive companies such as Alphabet and Microsoft display a greater propensity to rebrand, at a rate of more than 80 percent. Alphabet's brand architecture strategy is particularly interesting, with Google rebranding its corporate identity to facilitate M&A activity.

Landor's M&A database offers a range of insights

The study's database holds information on sector and company-specific brand transition factors during acquisitions, including target geography, strategic rationale, size of deal, type of deal, number of acquisitions made by company, and timeline for brand transition if implemented.

"Our study gives CEOs, corporate strategists, and M&A advisors a quantitative benchmark for comparison," says Sciullo. "It can help them see how competitors in their sector-and companies in other industries-have handled M&A, and which strategies have resulted in successful acquisitions. To maximize value for companies during an M&A, it's important that brand strategy be an ingredient throughout the deal process-not an afterthought."

For the study, Landor's methodology leveraged machine learning and big data to analyze 10 years of M&A activity from the S&P Global 100. The index was chosen because it measures the performance of multinational, blue-chip companies of major importance in the global equity markets. More than 2,300 acquisitions were taken into account, with brand strategy insights derived from more than 120,000 sources of unstructured data, including press releases, 3,000 web documents, 5,000 financial statements, and 2,000 investor presentations. The result is a definitive benchmark of M&A activity and its impact on brands and brand integrations of the leading companies across different industries, including Alphabet, Apple, Chevron, Dow Chemical, GE, JPMorgan Chase, PepsiCo, Pfizer, Procter & Gamble, Texas Instruments, Visa, and Vodafone.

For more information, contact:
Trevor Wade
Global Marketing Director
Trevor.Wade@Landor.com

About Landor
A global leader in brand consulting and design, Landor helps clients create agile brands that thrive in today's dynamic, disruptive marketplace.

Brand can accelerate the success of an M&A, so Landor partners closely with clients early on to ensure that brand is at the heart of integration strategies. Landor has helped companies such as Alcatel+Lucent, Alcoa+Arconic, Amoco+BP, Bayer+Covestro, DNV+GL, and Siemens+Primetals through mergers, acquisitions, and spin-offs.

Landor offers a range of M&A-specific services that include brand due diligence, brand valuation, portfolio optimization, future market modeling, and brand engagement. Our expertise also encompasses insights and analytics; strategy and positioning; brand architecture; innovation; identity; prototyping; naming and verbal identity; packaging; adaptation and implementation; environments and experiences; and new and interactive media.

Founded by Walter Landor in 1941, Landor pioneered many of the research, design, and consulting methods that are now standard in the branding industry. Today, Landor has 26 offices in 19 countries, working with a broad spectrum of world-famous brands, including Barclays, Bayer, BBC, BMW, BP, FedEx, GE, Kraft Heinz, Huawei Technologies, Marriott International, Nike, Pernod Ricard, Procter & Gamble, S&P Global, Samsung, Sony, and Taj Group. 

Landor is a member of WPP, the world's largest marketing and communications firm. For more information, please visit Landor.com and follow Landor on LinkedInFacebookTwitter, and Instagram.




This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Landor via Globenewswire

Om NASDAQ OMX

NASDAQ OMX
NASDAQ OMX
One Liberty Plaza - 165 Broadway
NY 10006 New York

+1 212 401 8700http://www.nasdaqomx.com

NASDAQ OMX (NASDAQ: NDAQ) is a leading provider of trading, exchange technology, information and public company services across six continents.

Følg saker fra NASDAQ OMX

Registrer deg med din epostadresse under for å få de nyeste sakene fra NASDAQ OMX på epost fortløpende. Du kan melde deg av når som helst.

Siste saker fra NASDAQ OMX

Concurrent Achieves Sales Milestone for Zephyr Transcode19.10.2017 15:35Pressemelding

Concurrent Customers Now Transcoding on Three Continents ATLANTA, Oct. 19, 2017 (GLOBE NEWSWIRE) -- Concurrent (NASDAQ:CCUR), a global leader in storage, protection, transformation, and delivery of visual media assets, announced today that Zephyr Transcode, which Concurrent launched last year as an integral part of its content delivery network (CDN) solutions, is now deployed with customers in Asia, Europe and North America. The deployments already support thousands of on-demand assets being transcoded to multiple formats and bit-rates to support any place, any device content availability. Zephyr Transcode supports multiple formats and quality levels including H.264 (MPEG-4) and H.265 (HEVC), strengthening Concurrent customers' capability to provide high-quality standards-based streams to any device their end-users desire. Zephyr Transcode is software-based and capable of running in traditional Central Processing Units (CPU) as well as Gra

German Armed Forces Renews Contract for Hexagon Geospatial Products19.10.2017 15:11Pressemelding

Defense agency will work closely with Hexagon Geospatial Premium Partner for next two years NORCROSS, Ga., Oct. 19, 2017 (GLOBE NEWSWIRE) -- At the HxGN LOCAL Defense Summit, a conference dedicated to defense and security in Western Europe, Hexagon Geospatial announced that the Bundeswehr Geoinformation Centre (BGIC) recently renewed a large software maintenance contract for Hexagon Geospatial products. The two-year renewal is for more than 100 licenses, mainly within the GeoMedia and ImageStation product families. The contract also includes consulting for workflow optimization. The contract was issued to Geosystems, a Hexagon Geospatial Premium Partner, which will work closely with the local subsidiary of Hexagon Safety & Infrastructure in Bonn and Munich to support BGIC. "The strong Hexagon Geospatial partner network allows our defense customers to benefit from a unique pool of expertise and tradecraft in the areas of remote sensing, GIS, and photog

Novel Preclinical Research Tools Provide Humanized Immune Response to Advance Immunotherapeutic Development, Live Webinar Hosted by Crown Bioscience19.10.2017 14:00Pressemelding

SANTA CLARA, Calif., Oct. 19, 2017 (GLOBE NEWSWIRE) -- Crown Bioscience, a wholly-owned subsidiary of Crown Bioscience International (TWSE:ticker 6554) and a global drug discovery and development services company providing translational platforms to advance oncology, inflammation, cardiovascular and metabolic disease research, announces a live webinar to be presented by Dr. Michelle Mack, Director of Global Scientific Engagement, entitled "Beyond Syngeneics - Novel Tools for Addressing Human Specificity in Immuno-Oncology." Checkpoint inhibitors like anti-PD-1, anti-PD-L1, and anti-CTLA-4 have revolutionized cancer treatment and have recently gained approval in several cancer types. Despite their potential, immunotherapies face significant development challenges due to the specificity and complexity of the human immune system upon which they act. Crown Bioscience has generated innovative research models to address these obstacles early during preclinical drug development.

Perfectus Aluminum Inc. Responds to Trade Group19.10.2017 13:00Pressemelding

ONTARIO, Calif., Oct. 19, 2017 (GLOBE NEWSWIRE) -- Perfectus Aluminum Inc. has issued the following: On October 12, 2017 the Aluminum Extruders Council (AEC), an industry group representing largely American aluminum extruders, posted to its blog a false narrative regarding a suit to which Perfectus Aluminum Inc. is a related party. The government is not "seeking unpaid duties from Perfectus for goods brought into the country." Rather, the government is attempting to use a 2017 Department of Commerce determination to assess retroactive antidumping duties on goods imported as early as 2011. It is discouraging that AEC would tout such an obviously egregious government overstep as a "victory" to their members and the industry: were it one of AEC's own members facing such an obvious violation of fair play and due process, it would rightfully argue that government overreach is a threat to manufacturers everywhere. In addition to the hypocrisy of the AEC's promotion of this case, its s

Payvision's annual report reveals cross-border ecommerce trends in 201719.10.2017 09:00Pressemelding

With online marketplaces and consumer technology leading the way for growth AMSTERDAM, The Netherlands, Oct. 19, 2017 (GLOBE NEWSWIRE) -- Payvision, global acquirer and data-driven omnichannel solutions provider, has published the findings of its fifth annual cross-border ecommerce research report, in collaboration with Juniper Research. The paper includes the results of a global survey of various industry players regarding the game-changers, the biggest challenges, the best practices for going cross-border, and much more. When compared to last year's findings, the report reveals a new and exciting context for global cross-border trade. The compound annual growth rate predicted for the next three years for cross-border ecommerce is now 17%, whereas it stands at just 12% for ecommerce overall. Also, over the past 12 months, merchants' attitudes towards cross-border ecommerce have become more positive, with 50% of respondents agreeing and 31% strongly

High Seizure Frequency in Children with Dravet Syndrome Negatively Impacts Quality of Life, New International Caregiver Survey Finds19.10.2017 08:00Pressemelding

Global survey of 584 caregivers of children, young adults and adults with Dravet illustrates the detrimental effect of debilitating, frequent seizures on quality of life and co-morbidities Results suggest a need for more effective antiepileptic treatments EMERYVILLE, Calif. and BREST, France, Oct. 19, 2017 (GLOBE NEWSWIRE) -- The Dravet Syndrome European Federation and Zogenix, Inc. (NASDAQ:ZGNX), a pharmaceutical company developing therapies for the treatment of rare central nervous system (CNS) disorders, announced today the publication of the initial results from a landmark survey into the clinical, social and economic consequences of Dravet syndrome on children, young adults and their families in Developmental Medicine & Child Neurology [doi:10.1111/dmcn.13591]. This study was led by Lieven Lagae, M.D., Ph.D., Professor at the University of Leuven, Belgium, Head of the Pediatric Neurology Department and Director of the Childhood Epilepsy

I vårt presserom finner du alle våre siste saker, kontaktpersoner, bilder, dokumenter og annen relevant informasjon om oss.

Besøk vårt presserom