Portfolios that rely on brand realize increased value.
Research shows that strong brands are successful — private equity groups that focus on brand realize more profit, grow more rapidly and sell at higher multiples.
Businesses that strategically leverage the power of their brand simply outperform the competition in their category.
An analysis by the Marketing Accountability Standards Board shows that brands contribute on average 19.5% and in many cases well over 50% of enterprise value when the impact of brand on firm cash flow, profits and firm value are properly measured.
Private equity firms would do well to consider branding efforts and go-to-market support as a key component to manage and grow their holdings.
Brand is an elusive asset — an intangible. Yet brand is the very thing that drives customer intent, trust and loyalty in the marketplace. These are the elements that help grow businesses exponentially and drive financial value.
Private equity firms smartly look for businesses with excellent growth and profit potential. Extensive market and target research helps lead them to companies which may be diamonds in the rough. Those businesses with excellent market potential but which would significantly benefit from strategic guidance and support — be it financial, operational and yes, brand and go-to-market strategy as well — in order to shine.
Often overlooked, effective brand and go-to-market strategies are paramount to help your new holding thrive.
Brand strategy improves marketplace recognition and perception and helps the business itself to become more valuable. The branding process also improves customer experience, internal operations and sales funnel management. Simply put — effective brand management packs a powerful punch and is key to the foundation for business growth — both top and bottom lines.
Why would you not invest in brand? It multiplies your return tenfold.
- Chris Burch, Burch Creative Capital
Go-to-market strategy is the creation of smart and balanced approaches for organic and paid marketing channels. But a go-to-market strategy is far more than a marketing and content plan. An effective go-to-market strategy will identify product and service opportunities, surface current marketplace trends to exploit or mitigate, refine traditional audiences and discover new ones, analyze the competition to pinpoint highly ownable spaces, identify potential risk factors and include key mitigation tactics that could affect the approach.
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