When selling a company, efforts to make brand value visible and measurable can have a positive impact on valuation.
I’ve acquired a company twice before. The experience taught me how much valuation is influenced by the quality of brand management. And it makes sense — effective management of a company’s brand is inevitably seen in its growth and strength in the market.
For the strategic buyer, it is like buying momentum. It can take years to recreate the same effects.
Depending on accounting practices, not every balance sheet itemizes brand value. Nonetheless, when it comes to selling your company, there’s no need to leave money on the table.
Make brand value visible. At least two years preceding your company’s sale, it is well worth the investment to strengthen and institutionalize brand management practices. This includes:
— Bringing rigour to the measurement of brand-influenced performance metrics
— Tightening the fit between the value proposition and the market
— Sharpening the brand’s market differentiation
I founded Aegis, a relational design firm. We help create emotionally-intelligent brands and organisations.