Nasdaq GlobeNewswire

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 GlobeNewswire

Nasdaq GlobeNewswire
Nasdaq GlobeNewswire
One Liberty Plaza - 165 Broadway
NY 10006 New York

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

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

Følg saker fra Nasdaq GlobeNewswire

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

Siste saker fra Nasdaq GlobeNewswire

Medibio Corporate Health Extends Global Footprint Signing Contract with Jacobs Engineering25.5.2018 16:38Pressemelding

Jacobs, one of the world's largest engineering and environmental consultancy groups, has more than 70,000 employees globally SYDNEY, Australia and MINNEAPOLIS, May 25, 2018 (GLOBE NEWSWIRE) -- Medibio Limited (MEB or the Company) (ASX:MEB) (OTCQB:MDBIF), a mental health technology company, today announced a significant contract for Medibio's Corporate Health product with Dallas, TX-based Jacobs Engineering across their Asia Pacific, Middle East, and European divisions. Through the Mental Health Check-In, companies can offer employees an end-to-end mental health program, direct to their devices, to see how the mind and body are tracking. It's a personalized, private, and objective way to see the unseeable: mental health issues in the workplace. Employees are provided the opportunity to confidentially check-in on their mental health and receive personalized confidential results from both an objective biometric screening in conjunction with a 12-minute subjective survey. Employers receive

VIRGIN PULSE ANNOUNCES INDUSTRY-LEADING GDPR COMPLIANCE25.5.2018 14:00Pressemelding

Virgin Pulse Extends the GDPR's Strong Data Privacy Rights to All Clients and Members Across the Globe PROVIDENCE, R.I., May 25, 2018 (GLOBE NEWSWIRE) -- Virgin Pulse, the leading global provider of digital employee health, wellbeing and engagement solutions, today announced that it has achieved compliance with the EU General Data Protection Regulation (GDPR) for the Virgin Pulse platform. The company has also appointed Associate Counsel Beatrice Botti as Data Protection Officer (DPO) to oversee the Virgin Pulse privacy program. With this achievement, Virgin Pulse leads the market as the first company in the wellbeing and engagement industry to fully meet the comprehensive standards of the new GDPR data privacy law. The company has completed a thorough review of its internal data collection, storage and handling processes and implemented enhancements to achieve GDPR compliance and give all Virgin Pulse customers and members greater control over their personal data. The GDPR is the firs

Resverlogix Provides Unrestricted Educational Grant for Epigenetic Symposium at International Renal Congress25.5.2018 07:45Pressemelding

CALGARY, Alberta, May 24, 2018 (GLOBE NEWSWIRE) -- Resverlogix Corp. ("Resverlogix" or the "Company") (TSX:RVX) today announced that on Friday, May 25, 2018, at the European Renal Association - European Dialysis and Transplant Association (ERA-EDTA) Congress in Copenhagen, Denmark, the Company is supporting a symposium titled: "Epigenetics in CKD & CVD: A potential breakthrough therapy?" The symposium highlights the role of epigenetics and BET-inhibition in chronic kidney disease and cardiovascular disease, especially in patients with diabetes mellitus, and the significant unmet need that still exists in this patient population. The symposium is co-chaired by Vincent M. Brandenburg, MD - Nephrologist, Aachen, Germany and Kamyar Kalantar-Zadeh, MD - UC Irvine School of Medicine, Irvine, CA, USA, both leading scientists also serving as advisors to Resverlogix's Renal program. The speakers and agenda are as follows: Introduction Vincent M. Brandenburg, MD - University Hospital of the RWTH

Atico Reports Consolidated Financial Results for the First Quarter of 201824.5.2018 22:30Pressemelding

(All amounts expressed in US dollars, unless otherwise stated) VANCOUVER, British Columbia, May 24, 2018 (GLOBE NEWSWIRE) -- Atico Mining Corporation (the "Company" or "Atico") (TSX.V:ATY) (OTC:ATCMF) today announced its financial results for the three months ended March 31, 2018, posting a net income of $0.4 million. Fernando E. Ganoza, CEO and Director, commented, "The strong production and all-in sustaining cash cost of $1.85 achieved this quarter is not reflected in the financial results as a large concentrate shipment was delayed to the second quarter, along with the revenue associated with those tonnes. The shipping schedule is expected to stabilize during the second quarter, where we will then benefit from the additional shipped concentrate and recognized revenue. We anticipate strong financial results in the next quarter." Mr. Ganoza continued, "Our emphasis will continue to be on further strengthening our balance sheet, improving production costs and most importantly regional

Luxembourg Announced as SNOMED International's Newest Member24.5.2018 15:16Pressemelding

London, United Kingdom, May 24, 2018 (GLOBE NEWSWIRE) -- SNOMED International and Agence eSanté Luxembourg are pleased to announce that Luxembourg has joined the organization as its thirty-second Member. Luxembourg, one of the leading nations in the area of information and communication technology, has set the development of eHealth technologies as a high priority. Agence eSanté, Luxembourg's national agency for the exchange and sharing of medical data, has set an overall mission to facilitate clinical information exchange both within Luxembourg and across other international actors. To work towards this reality, the agency has taken part in discussions about standardization across Europe, a contributing building block achieved with its membership in SNOMED International. With their membership, Agence eSanté has committed their support for the use of structured clinical terminology. When applied to the health sector, interoperability ensures that information systems, and through them h

SEMAFO Signs Underground Mining Services Contract with AUMS24.5.2018 14:00Pressemelding

MONTREAL, May 24, 2018 (GLOBE NEWSWIRE) -- SEMAFO Inc. (TSX:SMF) (OMX:SMF) reports that it has signed a mining services contract with African Underground Mining Services ("AUMS") to provide turnkey mining services for Siou underground. AUMS is a well-known and reputable mining contractor with underground experience in Burkina Faso and across Africa. Under the mining services contract, AUMS will be responsible for supplying the mining fleet and a skilled labour force for Siou underground in addition to ensuring development, production and auxiliary services. SEMAFO will provide technical services including geology and engineering as well as leveraging the existing surface infrastructure at Mana. The mining services contract has a term of 70 months. The economic terms of the mining services contract are consistent with the economics presented in the Mana pre-feasibility study filed March 29, 2018 on SEDAR. Preparatory work has already commenced on Siou underground with full project deplo

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

Besøk vårt presserom