The thing with reputation, is that it can’t be totted up in the bottom right hand corner by accountants, like the rest of your business. But it can mean the difference between a quick exit, or a drawn out one, and drawn out exits tend to come with a reduced fee.

Here, we offer a four-step plan of communications ahead of an exit strategy, and why your reputation is more crucial now, than ever before.

Develop clear messaging

First off, ensure all communications align with the company’s value, its growth story, and future potential. Messaging needs to appease and resonate with customers, prospects, stakeholders and, where appropriate, shareholders.

It’s essential that your brand and positioning within the markets you serve must be (and be seen to be) robust, stable, and carrying weight. In other words, your reputation is being upheld as you go on a charm offensive for prospective investors.

Clear messaging acts as the foundation for everything you do in the eyes of the public in the months and weeks leading to the announcement of a sale, or acquisition. It should be positive, demonstrate that the new dawn will herald an even greater future, and also be clear on YOUR reasons for the exit. Never underestimate human interest, and a desire to understand someone else’s motivation for change.

It’s not all about the sale

Once messaging is in place, carefully crafted content placed online and in publications serving the vertical sectors your customers operate in will help to build trust and confidence ahead of obtaining a business evaluation. It’s like a dress rehearsal. In turn, this will keep your sale value high as you secure positive press coverage highlighting the company’s achievements and value.

Likewise, position the company as an attractive asset for potential buyers through case studies, testimonials, and success stories. A company’s reputation forms the backbone of customer trust and investor confidence, and strong relationships with customers increase loyalty, resulting in better engagement across the board, valuable for both the business itself and investors (who will be looking at longer-term forecasts).

Crisis management and mitigating risks

Not everyone will be happy about a business coming under new ownership. Employees could become unsettled, suppliers and partners might re-consider credit lines and contract terms, and customers may become anxious about service delivery and pricing plans. You must anticipate potential negative perceptions and prepare responses to concerns about layoffs, cultural shifts, or market uncertainty.

It is therefore important communication lines are in place to cascade information out to all key stakeholders ahead of going public.

Internal comms should be a priority, and transparent, outlining the positives, continuity, and the opportunities which lie ahead. It should also make available support for any that are impacted by change, potential redundancy, re-location or just TUPE colleagues and integration.

Work with your PR agency to form a crisis management team to address internal, and media inquiries swiftly. And, have a response plan for negative press or regulatory issues, as these can emerge from speculation, or worse still, disgruntled employees going to their local press.

Control the narrative in media relations

As the sale goes live, be ready with all outward media communications. Identify media that’s relevant, and which stakeholders subscribe to. Content should be positive, focus upon growth to date and opportunities ahead for employees/customers. It’s normal for the buying company to take the lead on comms, but be sure to engage your PR agency to help control the narrative, and a clear, strategic message around the exit to avoid speculation and misinformation.

Messaging, and direct quotes from spokespeople should highlight company strengths and growth potential under the new stewardship, and emphasise financial performance, innovation, customer loyalty, and competitive advantages.

Media releases should include all the relevant information that’s permitted to go public, including dates of commencement, new job opportunities, impact on local communities and quotes from outgoing and incoming CEOs.

Six Reasons Reputation is Crucial in an Exit Strategy

1 – A good reputation helps attract high-value buyers

A well-regarded company is more appealing to investors who seek stability, innovation, and a positive brand image. A strong, positive reputation makes the company more appealing and reduces concerns over risks and liabilities.

2 – It helps to maintain customer and employee confidence

Ensuring a smooth transition helps retain customers and top talent, and helps a business hold its value. Employees, customers, suppliers and partners are more likely to support the transition if they trust the company’s leadership and vision.

3 – Your good reputation can help to stave off market volatility

And likewise, a damaged reputation can lead to share price instability, regulatory scrutiny, or a loss of customer and investor trust.

4 – Valuation and negotiation power is boosted

Companies with strong brands and trusted reputations often command higher valuations and better deal terms.

5 – It delivers enhanced media and public perception

A well managed, robust reputation ensures a smooth transition. Negative press can derail a sale or acquisition, or drive value down.

6 – Long-term brand legacy is secured

Even post exit, your reputation impacts the acquiring company’s chances of success.

Final thought

A company’s reputation directly influences the value of a business. A strong reputation brings customer loyalty, attracts new clients, and enhances investor confidence, making your business more appealing to potential buyers. In times of transition, a well-regarded business can weather change and challenges more effectively, and protect its value.

So, while thoughts may naturally sway towards overcoming legal and financial hurdles in the run-up to a sale, or acquisition, the power of PR should never be underestimated.

PR protects your brand, which has much more value to your business than the bricks and mortar, and your machinery and operations. And ultimately, it’s the brand that’s up for sale.

Or, as John Stuart, former CEO of Quaker Oats, put it: “If this company were to split up, I would give you the property, plant and equipment and I would take the brands and the trademarks and I would fare better than you.”

Looking to build your reputation ahead of an exit? Or jostling for position to get into, or maintain market prominence, then get in touch.