Is Your Brand (and Your PR) Impacting Who Will Buy Your Business?

Misha Brooks is Co-Founder and Director of the M&A specialists Ox Advisory, and he’s a close contact of ours here at Energy. Misha previously worked with Octopus Investments and Grant Thornton, before eventually co-founding his own firm Ox Advisory. During this time, he’s led over 40 deals ranging from £1m – £200m and has developed a vast network of buyers, including both public and private companies and London-based private equity investors.

As an M&A expert, we asked Misha to share his insights on importance of brand and communications when finding a buyer for your business. Here’s what he said:

Over the years, I’ve had numerous clients tell me with complete confidence that their company’s brand is outstanding. Synonymous with incredible customer service, high-quality work and industry-leading practice.

Then we speak with buyers, and… well, let’s just say they’re often less positive.

This isn’t to say that all business owners overestimate their brand’s position in the market, but often, we find that beauty is very much in the eye of the beholder.

When considering the impact of brand within M&A, there are a number of factors to consider. Many of them have already been covered to death. A quick search on ChatGPT will churn out plenty. So rather than repeating content that already exists, I thought it better to share a couple of stories and let you decide how important brand and PR really are in the context of a deal.

I recently spoke with the shareholders of a consumer brand. They’re in their 60s and, in many ways, the business is their pension. It’s exciting, fast-growing and built on the personal beliefs and morals of the shareholders and wider team.

These values run deep. They’re B Corp certified, donate a percentage of profits to charity, and do business in the right way. They’re also not shy about calling out those who don’t.

This stance has been one of the cornerstones of their PR and marketing strategy. They have directly called out larger brands for poor practices, highlighted issues in the industry, and never been afraid to say what they think.

Personally, I love it when brands do this. Quite often, they’re the ones that resonate most with me as a consumer.

But recently, this business has started to tone things down. The social posts are softer. The naming and shaming has stopped. You could say they’re pulling their punches.

When I asked about the shift, they told me they were worried that calling out competitors could put off potential buyers and make it harder for them to sell and retire.

And to be honest, I completely understand where they’re coming from. Some buyers will be put off. But it raises a wider question…

Will customers sense the shift and look elsewhere? Will staff start to question whether the business still aligns with their values? Will suppliers wonder whether your purpose or vision has changed?

And what happens if you do sell to a buyer who doesn’t share your culture or approach?

Well… in my experience, that’s when you see a mass exodus of staff and customers.

There are usually small tweaks you can make to become more attractive to buyers. But if you find yourself having to compromise the core beliefs of your business, that’s probably a red flag. That buyer may not be the right fit. And if you push ahead anyway, the deal may not end well.

So, in conclusion: when it comes to brand and M&A, don’t try to fit a round peg into a square hole. Stay consistent, be clear on your values, and trust your adviser to find a buyer who is actually aligned with your business.