DMF Group holds M&A Talk at the EBSpreneurship Forum 2021
Oestrich-Winkel / Frankfurt, 25. September 2021. DMF Group / Deutsche Mittelstandsfinanz held the M&A Talk at this year's EBSpreneurship Forum at the EBS University. Dr. Patrick Schmidl, managing partner, and Nelson Farfan Espada, associate partner of DMF Group, talked about the particular importance of brand value in the context of M&A transactions. Based on their vast experience from international M&A transactions and brand development for global corporations, both speakers pointed out why brand value (of both B2C and B2B brands) is often not or only insufficiently reflected in the company value, especially in small and medium-sized transactions, and what company sellers can do about it.
The main reasons for the nonrealization of brand value existing in a company are:
- Brand potentials are not fully elaborated in sales documents, which lack, for example, brand potential analyses backed by detailed financial planning. These are particularly essential when the company being sold cannot leverage the brand potential on its own.
- Often, the M&A consultants are overlooking the company sale lack brand-relevant know-how. In addition, corporate marketing specialists are often unable to translate brand potential into a "financial language."
- No sufficiently competitive situation is built up in the M&A process. Only if the competitive pressure for the company to be sold is intense enough will existing but not yet realized brand potential be fully reflected in the company purchase price.
The valuation gap can be eliminated if company sellers deal with the identification and financial presentation of existing brand potential at an early stage and, in the course of a structured M&A process, ensure that the commissioned consultant is able to successfully manage the communication interface between marketing and finance management on the basis of his or her own experience.
The two speakers from Deutsche Mittelstandsfinanz showed company founders, for whom brand building is of particular importance, that they cannot start early enough on elaborating their own brand value, having a later exit in view.
"We enjoyed sharing our experience on brand valuation in M&A transactions with an interested audience of company representatives and dedicated students from one of the most renowned business universities in the German-speaking world. We were impressed by the professional preparation for and execution of EBSpreneurship 2021 by the student body," stated Dr. Patrick Schmidl and Nelson Farfan Espada from DMF Group.
About DMF Group
DMF Group is a leading consulting company headquartered in Frankfurt, Germany. Its focuses include the provision of advice on the acquisition and sale of companies (Mergers & Acquisitions) and on corporate succession. The company boasts particular experience in the realization of brand values.
DMF Group / Deutsche Mittelstandsfinanz (www.dmfin.com) is a partner of Corporate Finance Associates Worldwide (www.cfaw.com), one of the oldest investment banking groups in the world, with approximately fifty offices worldwide.
We are happy to answer your questions regarding corporate transactions at any time.
Dr. Patrick Schmidl, Managing Partner
Nelson Farfan Espada, Associate Partner
Tel. + 49 69 – 9542 1264
Deutsche Mittelstandsfinanz GmbH