“If I was down to the last dollar of my marketing budget I’d spend it on PR.”
Some of the business world’s greatest figures have all hailed the power of PR – whether it’s Bill Gates, Warren Buffet, or Sir Richard Branson. In fact, Gates once said: “If I was down to the last dollar of my marketing budget I’d spend it on PR.”
A proactive PR and communications strategy is hugely important at any stage of a business’ journey – whether it’s a global success, or a fledgling start-up. Having the opportunity to influence, tell your own story, build trust and credibility in your brand, while sitting prominently in the shop window, are all strong components for growth.
This is particularly so when it comes to M&A. Whatever side of the fence you sit on, whether it’s as an acquirer or someone looking to be acquired, PR plays an important role in making that process quicker and more efficient. But why? Let’s look at both sides of the story.
Buy-side
If you’re open for business and actively looking to acquire, making sure the market knows about this desire can be hugely beneficial, particularly if you’re trying to reach niche markets that may be less familiar with the corporate finance world. Whether you’re investor, or a trade buyer, building a strong reputation in key sectors is hugely important. As you move along the acquisition journey, being known as a specialist with a proven track record for buying and growing businesses can work extremely well and support your M&A ambitions.
If businesses are coming to you looking to be acquired, it not only builds up a healthy acquisition pipeline, but it makes the process of identifying potential deals far shorter. The same can be said when you’re courting potential acquisition targets. If you have a visible and compelling story to tell, those conversations about why you’re the right fit will be far easier to have.
Talking about your desire to buy, and shouting about the successful deals you’ve done, while demonstrating the value you bring to businesses post-acquisition, all help to position you as a trusted buyer.
Sell-side
Warren Buffet once said: “It takes 20 years to build a reputation and five minutes to ruin it.” Now, we’re not suggesting you need 20 years’ worth of PR before you can put yourself on the market, but gearing up for a sale can take time and needs careful consideration.
In order to reach as many investors and trade buyers as possible, to create real interest in your brand, you need to tell a compelling story of growth over many months. You need to talk about success, strengths, the potential of your business, the opportunities in the market – you’re trying to make the task of due diligence easier.
Many businesses shy away from revealing too much about their business, but if you’re looking to be acquired you need to shout about what you do – everything from financials, to people, culture, innovation and investment. Potential acquirers need to see a successful business in motion – the easier you are to find, the more powerful the story, the better chance of a successful acquisition.
Make sure in the months ahead of setting out your stall, you keep a steady flow of proactive and positive news stories that reach both local, regional, trade and even national media. Be active on social media and keep your website up-to-date, and position the company as an expert in the sector through strong thought leadership. All of this will help to create real value in the brand.
While positive PR can work wonders, be careful not to focus too heavily on one particular person, such as the founder, especially if they’re planning to exit the business post-acquisition. The good will needs to be built in the business and not in the people who may not be there in years to come.
Over the years, we’ve had many businesses (on both sides) tell us of the value that PR can bring to the M&A process. It really is true – “If I was down to the last dollar of my marketing budget I’d spend it on PR!”
