Strategic Branding and Exit Planning

I’ve gotten involved with a networking group, which is something I never thought I would do. I actually like it, which is typical of when I try things I was sure I didn’t like (I’m looking at you, ballroom dancing). It always seemed like there wasn’t really much point—everyone in the networking group is a seller and you want to network with buyers. This group is different. Everyone is a high-level professional in their own field and if nothing else there’s fellowship and a chance to learn each time we are together. We call ourselves the “Entrepreneurial Advisory Circle.”

We are focused on exit planning as an area where we can make an impact. That has been an education for me. There’s a lot more to it than what most people think. That would include the idea that you should be planning for your exit from the minute you start. We call it “Love it and Leave it” because everyone is going to leave their business. The question is how and at what value.

People will mostly focus on the tax and financial implications—and rightly so. At the same time, executing a solid communication strategy can facilitate your exit in important ways. The one you usually hear about is handling the transition—I’ll address that in the future. The other one is boring because it is proactive: positioning the company for maximum value—and avoid a distressed-brand fire sale.

Note that this is a complex field with numerous different methods of valuing brands. Here’s a good overview on how that works. My focus here is on ways strong strategic brand communications applied proactively sets a company up for success.

Strong Brand Fundamentals

There is an endless variety of reasons why a company might be purchased. Sometimes they are bought with the idea of being “merged” into another brand.

Many times, though, the purchaser intends to operate under the existing brand for a period of time or maybe forever.

In that case, they are buying your brand. Which makes total sense. Your brand is the bridge between owners. An effective brand means that your company has made relevant promises to your external and internal stakeholders and kept those promises consistently—what people think about you and what you want them to think are in close alignment. It also means that your customers are loyal to you and maybe—just maybe—willing to pay a premium for your product or service.

The good news is that a strong brand is a fundamental element of a strong company. That will also be reflected in your revenues and your other metrics.

Do I have time to get my brand right?

That’s an excellent question. Two thoughts. First, when you remember that the perfect buyer might be looking at you right now without you knowing it, the value of creating and consisntently maintaining a strong brand becomes clear.

Second, if you do decide to get your brand “correct” in a quick period of time, remember the old “good, fast and cheap, pick two” rule and realize you just ruled “cheap” out.

Demonstrating Value with Data

The digital transformation has increased demands for measurement in communications. It’s become essential to managing communication programs and could also provide support for your case to a buyer that your brand is an asset.

What a buyer wants (for maximum value) is a sustainable asset—not something built on short-term promises and scorched earth. Research—especially longitudinal—will help to demonstrate healthy relationships with all your key stakeholders—each of which a new buyer would have the opportunity to take over on day one and earn moving forward.

That means people trust the brand. It has relevance to them. The brand is effectively differentiated from its competitors. Perhaps most importantly today, there is also an effective employer brand and stakeholder engagement strategy that supports talent retention and acquisition.

Measurement costs money. Having said that, if you’re doing a 360 review of your employees—internally and externally—then you can do one for your brand on an annual basis.

Put the Spotlight on Non-Founders

Most companies founded by entrepreneurs are closely identified with the founders. That’s a good thing….until it isn’t. A buyer wants to ensure success after the owner leaves. I once talked to an architecture firm that bought a similar company and watched business disappear like steam over a kettle when the owner left.

Earn-outs are a popular answer to this challenge. Beyond that, there is also strategic value to ensuring that your content does more than show off the founders. A deep and engaged bench is good business and helps customers and new owners trust that the company will still have the talent to succeed even after the founders depart.

Make a good digital first impression

Like it or not, the first page of Google is a stakeholder. You might not make a sale on your first impression there, but you could lose one. Therefore, it seems prudent to invest in search optimization. You can influence not only potential buyers but also potential customers and employees.

Do what you can to be sure that you like what you see. Don’t fall for any black magic SEO tricks. I’m not an SEO expert, but you can find someone who is. The basic idea is simple: provide content people find useful. Executing it is a full-time job.

Maximizing Value is a Big Job

There is way more to this topic than I ever thought there was. The rewards are there, too. And just like there are other places for your customers to buy…there are other companies for people to buy as well.