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Driving value
The missing multiple
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A mindset shift In a challenging investment environment, multiple expansion is harder to achieve through leveraging tangible assets alone – the market is also rewarding growth narratives, clarity and brand reputation.
A strong brand creates alignment, reduces noise,
This requires a mindset shift: tech used to be seen as a back-office function. Now it’s a non-negotiable driver of growth. Brand is on the same trajectory, when aligned with vision and culture as critical components of value creation in which investors need to become fluent. In an industry where capital and operational know-how are abundant, those who leverage these undervalued assets will be winners, building businesses that buyers will pay a premium for. Is there a language barrier? There is a misconception in many boardrooms that “brand“ just means logos and taglines. In reality it is the strategic narrative of the business. Clarity aligns leadership and employees around a common vision and value proposition, while shaping market perceptions of credibility and confidence. It is the connective tissue between a well-engineered talent experience and a differentiated customer experience. Businesses that master this command higher trust, loyalty and pricing power in the market, ultimately supporting premium financial performance.
Why brand belongs in the private equity playbook Brand is the strategic story that underpins commercial traction. It clarifies vision, aligns teams, sharpens the value proposition and creates pull in the market. It enables businesses to punch above their weight, to fast-track growth and command higher multiples.
and shortens integration time, acting as a catalyst for other transformation initiatives to succeed. Olivier Lieven, Partner, Astorg
Leaving value on the table Deals falter because the story isn’t clear or cultures clash post-merger. Culture fit issues cause 50% of acquisitions to fail. Where cultures and brand are pulling in the wrong direction it confuses employees and customers, undermining market positioning and reputation to erode value that financial engineering alone can’t salvage. Conversely, when vision, brand and culture are actively aligned they connect ambition to action, ensuring strategy is clear internally and credibly projected externally. An aligned organization moves faster and more confidently, commanding higher investor confidence and higher multiples upon sale. Simply put, buyers (and LPs) are asking, “What’s the story here?” If an owner can’t tell a compelling growth story, backed by a brand that resonates in the market, there is a disconnect and risk of discount on exit.
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