There are a number of reputation management best practices you can follow during food and drink mergers and acquisitions
Reputation management was recently found to be a chief concern among executives, but it’s easy to overlook it during M&As. You only need look at the fallout at Cadbury though to see the damage it can inflict on even the most established food brands.
Brand value and reputation can be hard to measure directly but estimates place 30-50% of a company’s value on intangible assets.
Jonathan Hemus, Managing Director of reputation management company Insignia said: “Given that there is enormous financial value in reputation, it is essential that businesses do everything in their power to preserve (and ideally enhance) reputational value as a result of merger or acquisition.”
Companies used to have full control over their brand, but with the rise of social media, reputation is now more of a dialog with customers and stakeholders.
Follow our top tips for managing brand reputation, and your M&A experience may run more smoothly.
Brand reputation is central to food and drink and yet it’s one of the assets most at risk during M&A. If you take a strategic approach and maintain good communications throughout, you will protect your brand reputation whether you are the acquirer or target. In part 2 we’ll be looking at employee communications, social media strategy, and due diligence considerations.