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The role of brand in corporate strategies for mergers and acquisitions

Vol. 27, Iss. 6, JUNE 2021

Received: 4 February 2021

Received in revised form: 16 April 2021

Accepted: 10 May 2021

Available online: 29 June 2021

Subject Heading: BUSINESS VALUE

JEL Classification: G32, G34

Pages: 1241–1269

https://doi.org/10.24891/fc.27.6.1241

Kirill L. ASTAPOV Lomonosov Moscow State University (MSU), Moscow, Russian Federation
Ast_K@mail.ru

https://orcid.org/0000-0003-4766-4421

Anna S. KHVOROSTYANAYA Lomonosov Moscow State University (MSU), Moscow, Russian Federation
Khvorostyanayaas@gmail.com

https://orcid.org/0000-0003-4421-3705

Subject. The article discusses how brand influences corporate and financial strategies.
Objectives. We determine the role of brand in setting up transformation strategies, including M&A, financial indicators of companies.
Methods. We relied upon methods of economic analysis and synthesis, comparison, matching. Strategic analysis is based on renowned concepts for strategic marketing and branding, including those proposed by M. Porter, Ph. Kotler, R. Kaplan and D. Northon, V. Kvint's methodology for strategy-setting.
Results. Illustrating some cases, we justify the hypothesis stating that branding plays the most significant role in setting up transformation deal strategies for consumption sectors, light industry and fashion, while transformation processes in high-tech, banking are not always accompanied with rebranding. Furthermore, we suggest how it should be assessed whether it is reasonable to save a brand in case of M&A.
Conclusions and Relevance. Businesses can refer to this study and respective cases to comprehensively evaluate business transformations, including new views of the role a brand plays for the financial feasibility of M&A deals across industries. The capitalization of a newly transformed company can be increased provided rebranding is more thoroughly considered as part of M&A.

Keywords: strategy, rebranding, mergers and acquisitions, retail

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