The data behind the brand: Measuring and proving branding ROI

In the world of private equity, every decision is driven by data, and every investment must show a clear, measurable return. The "buy and build" strategy is no exception, with its focus on quantifiable financial outcomes and a clear path to a profitable exit.

However, the role of brand in this process can feel like a contradiction. Investors want to see a clear return on investment for every pound spent, yet branding is often perceived as a "soft" or unquantifiable area. We believe this perception is a missed opportunity.

Here, we explore our belief that brand is not simply a creative exercise – it's a powerful business tool that amplifies impact – and highlight how it can be measured and proven with the right data.

The branding challenge in the buy-and-build model

This gap between perception and reality can lead to significant problems that erode value. You may feel less comfortable with factors like marketing and branding, as your primary focus is on financial performance. This perspective, while logical, often leads to missed opportunities and tangible risks:

Brand fragmentation: A collection of loosely connected businesses without a clear, unifying identity is often perceived as less valuable and riskier by potential buyers.

Inefficient marketing: Managing separate marketing campaigns and websites for multiple brands is costly and often leads to duplicated effort, making it difficult to measure overall performance.

Overlooked value: Without a clear brand strategy, it's difficult to demonstrate the full value of the combined entity and the synergies created, which can result in a lower valuation at exit.

The data behind the brand: proving its ROI

The key to proving branding ROI lies in connecting brand investments to tangible business outcomes. A strong brand directly impacts core business KPIs that speak the language of a PE investor.

• Driving revenue: A unified brand makes it easier to consolidate and streamline marketing and sales efforts. This leads to more efficient spending and easier promotion of the group's full range of offerings, which facilitates cross-selling and unlocks revenue synergies.

• Increasing enterprise value: A well-branded company is perceived as less risky by potential buyers. A strong brand architecture creates a unified brand identity that demonstrates market leadership and presents a consistent face to the market. This directly contributes to a higher valuation and a more successful exit.

• Building a talent and acquisition magnet: A reputable brand signals stability and growth, making the group a more attractive acquirer for future bolt-ons and a more appealing employer for top talent. This reduces the costs and risks associated with finding and integrating new businesses and talent.

Our strategy: a proven approach to brand ROI

At The Bigger Boat (TBB), we specialise in helping private equity firms and their portfolio companies navigate the complexities of strategic branding. Our "diagnose before we prescribe" approach ensures that every branding decision is tied directly to your business objectives and a clear path to achieving your goals.

Our services are designed to provide a comprehensive brand strategy and a future-proof brand architecture. By partnering with us, you can:

• Solve the brand architecture problem by creating a unified brand for your consolidated group, which demonstrates market leadership and a higher perceived value.

• Fix brand confusion by presenting a consistent and clear identity to the market.

• Strengthen internal culture by using internal branding to foster a shared mission, vision, and values among employees from different legacy companies.

A strong brand is a strategic asset that, when handled correctly, can be measured, proven, and leveraged to unlock hidden growth potential, accelerate organic expansion, and secure a significantly higher exit multiple.

It's time to build a brand that works for you. By partnering with us, you can make your next investment not just bigger, but truly better positioned for a successful and highly profitable exit. Talk to our experts today.