The past year, things have been booming on the mergers and acquisitions front for the Defense Tech industry. According to the Raymond James Defense and Government Services Market Intel Report, the first three quarters of 2022 resulted in almost 300 M&A transactions.
Who is buying? It is a mix of strategic and private equity (PE) firms. In the last two quarters, PE has been taking a more active role, as evidenced by Advent’s acquisition of Maxar for $6.4 billion. But strategic buyers also see the opportunity in big data, AI, cybersecurity, data analytics, rockets, and space. The L3Harris purchase of Aerojet Rocketdyne for $4.7 billion underscores the excitement for having these capabilities in company portfolios.
With billions of dollars in the mix, these organizations must make it a priority to articulate the benefit of the acquisition to current and new stakeholders, regardless of acquisition size or the potential for significant investment gain from a PE or larger-market peer. Without that cohesive “why,” value will certainly be left on the table. If it is unclear why a company does what it does, then any rationale about why the investment was made or acquisition took place will fall flat with customers, employees, and partners.
How can a thoughtful, purposeful M&A brand strategy create value?
Differentiation: Most defense technology companies face similar challenges—narrowing margins, supply chain and resourcing, retaining talent, and staying on the cutting edge of innovation, to name a few. How they manage those challenges helps distinguish them. But without a powerful brand strategy, your differentiating factors will get lost in the noise. Brand strategy can help you stand out from the competition by clearly articulating what makes you unique and why customers and potential employees should choose you.
Loyalty: Many organizations see increased turnover following a merger or acquisition, as employees begin to feel they are working at an unfamiliar company. But employees—and customers—who feel a strong connection and see a clear path forward are more likely to be loyal. It is vital to evaluate and clearly communicate the common themes and shared values that unite the two companies. A compelling brand strategy can help build an emotional connection to stakeholders, including a credible and authentic employee value proposition that attracts, and retains, top talent.
Reputation: In a fast-paced, consequential industry like defense tech, there’s more than money on the line—these organizations’ actions often have far-reaching implications for science, exploration, and national security. It’s a valuable asset that drives loyalty, attracts new customers, and improves your brand’s overall value. A purposeful brand strategy can help build and maintain a positive reputation.
At Grafik, we’ve collaborated with defense tech companies such as HII, Maxar Technologies, GDMS, HDT, IAP, and Capella Space to develop credible, authentic, and differentiated brands, and marketing strategies, that deliver value. So whether your pain points stem from the need to blend cultures, or you’re looking to create, and market, a more compelling value proposition, our team can help you get there.
Want more? Check out our work with IAP, Capella Space, and Alion, or feel free to drop us a note.
