9 Reasons Why Investing in Your Brand Can Have Strong ROI

The Problem

Only 18% of the time does a private equity firm see their targeted deal flow (according to SPS data cited in Bain & Company Global Private Equity Report), making the deal sourcing community not only fragmented but highly inefficient.

There are many factors that feed into this market dilemma. Most notably is the fact that M&A transactions are clouded in secrecy and buyers list are put together with a careful hand.

There is also the fact that there are approximately 2,500 sell-side professionals with an extremely long tail of potential transactions, with more shingles being hung every day.

The Brand Solution

After interviewing many professionals on both sides of the middle market, it is abundantly clear that having a strong and clearly defined brand helps raise the profile and thus the consistency of seeing the right deals.

Applying consistent strategic marketing and branding can put a middle-market firm – competing constantly for the next great transaction – at better odds of making it onto the right lists.

A strong brand is not built overnight, nor does it stand on its own. However, a consciously defined brand can set one firm apart from another by staying top of mind during discussions and even foster a sense of trust from key constituents. This takes time, consistency and a strategic approach.

9 Reasons to Invest in Your Brand

In addition to growing the business development pipeline, there are numerous intangible reasons to invest in your brand. May the odds be ever in your favor:

1. Increase Share of Mind - Amplify your brand with a clear and confident brand position to improve visibility

2.    Define Your Purpose – Highlight your reason for existing and clearly define each element of your marketing strategy

3.    Lower Cost of Capital – Greater brand focus leads to an efficient marketing approach that more accurately targets the companies you want to reach

4.    Improved Transaction Opportunities – Having a clear and confident brand identity increases your attractiveness to potential partners, intermediaries, and targets

5.    Strengthen Your Team – Build loyalty and pride by crafting a message and brand that your team can rally behind

6.    Focused Messaging – Create a foundation for all communications that highlight your key points of differentiation

7.    Bolster Your Reputation – Validate your position in the market by delivering a consistent and clear message

8.    Attract the Best People – Success begets success, especially when it comes to talent

9.    Personal Branding – Business increasingly requires a high-touch approach so providing the opportunity for dealmakers within your firm to build personal branding will improve the firms’ overall stature in the market

We are passionate about marketing and work with middle-market private equity and investment banking firms to best position their brand so that it is memorable, and that it best represents the team, your vision, and ideas in the best possible way.

Learn more about our approach here and reach out to start the conversation on how investing in your company’s brand can drive new transaction opportunities.