Are you in the right position?
Why incorporating PR into your exit strategy is essential
As we step in 2021 incorporating PR into your exit strategy is a ‘must have’ not a ‘nice to have’. From creating a competitive advantage to raising brand awareness there are many different ways that Public Relations can benefit a business. However, one area which is often neglected is utilising PR as part of an exit strategy or as part of the process to position a company for sale. At Flourish PR we are frequently called a few months before the sale of a company. Two common scenarios are:
Scenario One
- The company owner or board want to sell the business which is successful and has grown through proactive sales activity to a turnover of circa £15 million+ with a strong profit margin. The only problem is that no one has heard of the business and the company is unable to find a buyer or the ‘right kind’ of buyer.
Scenario Two
- Equity partners or investors in a business have grown a company to a target turnover figure, for example, turnover £10million and they now want to sell on the business for a multiple of EBITDA – anywhere up to 8 x EBITDA for a high value company. However, marketing systems and processes are not consistent or linked to sales, PR has been non-existent, and the perceived brand value is questionable.
A considered exit strategy for a business is ideally planned in advance and includes the incorporation of PR activity. It’s important to start and plan your PR activity as soon as possible. A well thought through and executed PR strategy, for instance, may take twelve months to build momentum.
Growing revenue and building brand are tightly linked. Using PR to build your brand is imperative for a successful sale and one that results in great value for investors, equity partners and owners. Also, it will help position the business to attract suitable buyers – remember companies which are perceived as having great growth potential appeal to purchasers as well as private equity firms.
For investors and business owners looking to build a brand in the lead up towards sale, there is no better tool than a solid PR strategy. The right plan will also help to nurture leads, support growth, and critically boost a company’s reputation online and off.
The strategy of revenue growth through winning customers from competing brands, for example, requires a solid, durable, and compelling differentiated advantage which is clearly articulated and publicised. Whilst some firms can create a compelling differentiated advantage, many struggle to articulate this advantage clearly and consistently as well as showcasing it to external audiences. Let your market and your target audiences know what you are doing. Ultimately, you want your brand to stand out from the crowd.
Learning how to communicate and network is the first stepping stone for many businesses. It is an important element of a PR strategy and one any business can learn how to use and implement easily. Along with creating and curating content for their own websites, firms who spread brand awareness by contributing to other blogs in relevant industries or vertical markets will increase recognition and engagement with their brand. As a brand’s credibility begins to extend, offering and securing thought leadership articles to larger media outlets such as Forbes or Business.com becomes a reality.
At Flourish PR we know how valuable networking can be. It is a great way to build a brand and yet there are still plenty of organisations who fail to make the most out of opportunities born out of networking. For companies looking to dip their toe in the networking waters, a good place to start in the digital age is to join relevant groups on social media pages and industry forums.
And finally, encourage your CEO to be social. Social CEO’s are PR gold. LinkedIn is a great place to begin. Here you can shape a thought leadership PR strategy which adds value to the brand and the CEO. Can’t find your voice? We can help you.
Shaping a strong brand, the brand position and brand reputation is one essential element to preparing a business for sale, and it’s one that should not be overlooked or left to the last minute. Preparing a company for sale can feel daunting. Whilst it isn’t always possible to plan years in advance for an exit, try to at least reflect on the past two years of activity. One element of that activity needs to include brand awareness and positioning, and PR forms a crucial component to this. Attractive companies are profitable and reliable and hold a strong brand position within their marketplace or at the very least a perception of one.
Selling a company is significant. It is something many people and organisations aspire to but don’t achieve. If you position the business well, you stand to gain enormously so do not leave PR and brand to the last minute.
For more information on how we can help strengthen your brand’s reputation or get you started on a thought leadership campaign or PR strategy please get in touch at hello@flourishpr.co.uk or call 01628 882610.
