M&A activity isn’t a foreign concept to me, every year we distribute and promote press releases about company sales or funding rounds. We are fully aware of the significant value positive PR can add once a transaction is completed. But this is the culmination of a longer process that can start months, sometimes years before. If a company covets acquisition, then it needs to put itself in the shop window and boost its valuation by convincing potential buyers that they’re a ‘must have brand.’
What acquirers are looking for, how PR can help
Overall there are five areas where companies need to show strength when attracting a lucrative valuation and exit. These are:
- Having a clear vision, clearly communicated: acquirers are drawn to companies with a clear and compelling vision that is effectively communicated. This helps them understand the strategic direction and long-term potential of the business. Carefully articulated company messaging and market positioning can communicate this vision.
- Strong intellectual property, reflecting a competitive edge: strong IP, especially valuable technology patents can offer significant competitive advantage and boost value multiples for any business. Companies can drive awareness of this IP through strategic industry analyst relations programs, or by entering industry awards.
- A credible leadership team: a respected and visible leadership team instills confidence in acquirers, signaling that the company is in capable hands and destined for sustained success. The profile of a company’s leadership team can be boosted by high profile speaking opportunities, through regular thought leadership articles, or the regular sharing of market commentary with target media.
- A robust and growing sales pipeline: an active sales pipeline reassures investors that a company can sustain a growth trajectory into the future. A healthy supply of news communicating new wins and partnerships will create this positive market perception.
- A strong marketing function: outbound marketing activity demonstrates that the company is serious about lead generation and maintaining a strong market profile. It can also translate to quicker returns on investment for buyers.
As you can see, the same activities that drive lucrative exits are the same that underpin a successful and strategic marketing communications plan. Typically the volume and cadence of activity will increase at the point when a company is courting buyers and throughout any resulting periods of negotiation. It’s easy for companies to get into good habits and maintain a healthy level of PR activity, regardless of whether they’re courting a sale or not.
Learn more about Exit communications and how CCGroup can help here
