Make Value Ascend
THE ROLE OF BRAND IN PRIVATE EQUITY SUCCESS
As private equity enters 2025, the industry is rebounding with renewed deal-making momentum, driven by stabilising macroeconomic conditions, increased sovereign wealth fund participation, and AI-driven efficiencies in deal sourcing and portfolio management. However, heightened competition for assets, evolving regulatory pressures, and geopolitical uncertainties require firms to adopt more sophisticated value creation strategies. In this evolving landscape, brand has emerged as a critical lever, enhancing investor confidence, portfolio differentiation, and long-term market positioning.
About Phoenix Studios
In times of disruption and opportunity, we help brands rise to the challenge.
Phoenix Studios is a boutique brand consultancy built on deep brand expertise, blending fresh thinking with decades of experience. We craft strategy, build identity, and streamline brand management to drive lasting impact.
We partner with private equity firms to turn brand into a powerful value creation tool. From assessing brand equity during due diligence to embedding brand strategy into active management and exit planning, we help PE firms drive growth, improve margins, and maximise returns.
Brand as a value creation lever in private equity
Historically, PE firms have focused on operational efficiencies, cost-cutting, and financial restructuring as their primary methods of value creation. However, in today’s environment, those levers alone are no longer enough. As valuation multiples increase and competition for attractive targets intensifies, firms must seek additional avenues to create and sustain value.
Increasing demand & pricing power Reducing costs Lowering risk Enabling market expansion
Strong brands shift the demand curve, allowing businesses to compete on quality rather than price, thus improving margins.
A recognised and trusted brand leads to lower customer acquisition costs, improved employee retention, and reduced hiring expenses.
A well-positioned brand creates higher barriers to entry for competitors, fosters stakeholder trust, and enhances financial resilience.
A strong brand can facilitate entry into new markets, attract strategic partnerships, and improve business scalability.
Integrating Brand into the Private Equity Lifecycle
Private equity firms that integrate brand into their investment strategy are better positioned to maximise returns, mitigate risks, and drive sustainable growth in an increasingly complex environment. A strong brand can enhance pricing power, customer acquisition, employee retention, and exit multiples, all of which contribute to a more profitable investment. When integrated into the PE lifecycle—from acquisition due diligence through to exit planning—brand becomes a powerful asset that helps portfolio companies achieve sustainable growth.
BRAND DUE DILIGENCE
Assessing potential targets’ brand strengths.
Providing visibility of brand opportunities and risk factors.
Supporting the 100day plan.
BRAND STRATEGY
Positioning brand to deliver on value creation strategy.
Ensuring strategic intent is fulfilled from ideas to execution.
Achieving efficiencies in brand management and related supply chains.
M&A
Assessing brand equities to ensure brand synergies are realised.
Defining how to play to the merged entity’s brand strengths.
ESG
Aligning business ESG efforts with brand; carefully leveraging so as to be compelling and authentic.
PEOPLE & CULTURE
Developing powerful employer brands and cultures to maximise attraction and retention and productivity of world-class talent.
DIVESTMENT
Targeting diverse stakeholders with clear exit messaging, ensuring prospective buyers see the value of the business and that current LPs and GPs are informed.
Positioning and spin-offs for maximum success.
1. ORIGINATION
EXIT 2. ACTIVE MANAGEMENT
1— ORIGINATION (BRAND DUE DILIGENCE)
Evaluating Hidden Value & Risks
Brand assessment should be an integral part of the deal origination and due diligence process. However, many firms still rely heavily on financial metrics and operational KPIs, overlooking the potential and risks tied to brand strength.
A Brand Due Diligence (BDD) framework provides clarity on:
The strength of a target company’s brand equity. Competitive positioning and market perception. Potential for value creation through brand repositioning, portfolio consolidation, and supply chain optimisation.
Cultural alignment between the target company and the PE firm’s investment philosophy.
2— ACTIVE BRAND MANAGEMENT
A
Central Organising Principle
Once a company is acquired, its brand strategy should align with the overarching business strategy to maximise value. Many businesses treat brand as a marketing function rather than a strategic asset. However, the most successful portfolio companies embed brand as a central organising principle, ensuring it guides decision-making across:
Finance & M&A
Aligning brand strategy with investment goals and synergy realisation.
Sales & Marketing
Enhancing positioning and differentiation in competitive markets.
Customer Experience
Ensuring brand consistency across all touchpoints to drive loyalty.
HR & Culture
Building a compelling employer brand to attract and retain top talent.
ESG & Corporate Responsibility
Aligning brand communications with sustainability initiatives to enhance investor and customer confidence.
Research shows that 60% of deal failures stem from poor due diligence that fails to uncover critical brand and cultural risks. By integrating brand assessments early, firms can ensure they are investing in businesses with strong, scalable market positions.
A strong brand-led culture also improves employee retention, accelerates innovation, and enhances a company’s agility in responding to market shifts. According to research from Harvard Business School, companies with purpose-led cultures experience 20-30% higher performance than those without.
OPTIMISATION
Enhancing Market Perception & Valuation
As portfolio companies approach the exit phase, brand strength plays a crucial role in maximising investor interest and securing premium valuations. A wellmanaged brand can directly influence:
Exit Readiness
Ensuring brand performance is being measured and is central to the company’s management dashboard.
Brand Architecture & Portfolio Optimisation
Refreshing the brand to align with value creation strategies and market positioning.
Strategic Positioning
Refreshing the brand to align with value creation strategies and market positioning.
Exit Communications
Targeting the right stakeholders with a clear narrative that highlights brand strength, differentiation, and longterm value potential.
Firms that fail to integrate brand into exit planning risk leaving value on the table.
According to an EY study, 40% of PE firms say a lack of fully developed brand diligence caused value to erode in their last exit.
Culture & Brand: A Symbiotic Relationship
Alongside brand, culture is a key determinant of longterm business performance. Yet, private equity firms often fail to formally evaluate organisational culture in portfolio businesses. A strong brand provides a framework for fostering a culture that enhances workforce engagement, innovation, and adaptability.
A brand-led culture strategy should:
1
Inspire
Engage leadership to champion the brand and drive cultural change.
2
Enable
Equip employees with the tools and training to live the brand values.
Research indicates that 81% of PE executives consider culture critical to successful strategy execution, yet very few conduct formal cultural evaluations during acquisition.
3
Empower
Reward on-brand behaviours to reinforce cultural alignment.
Embedding brand and culture into the value creation plan ensures portfolio companies remain competitive, agile, and attractive to future buyers.
Conclusion
Today brand is a primary consideration in private equity—it is a strategic asset that drives growth, differentiation, and long-term value. Firms that integrate brand into their due diligence, portfolio management, and exit strategies gain a competitive edge, ensuring that their investments are not only financially successful but also market leaders with strong reputations and sustainable growth potential
By recognising brand as more than just marketing —but rather as a
fundamental pillar of value creation
—private equity firms can maximise returns, reduce risk, and build stronger, more resilient businesses.
Sources
1. Bain & Company (2025). Looking Ahead to 2025: Preparing for What Comes Next. https:// www.bain.com/insights/looking-ahead-m-and-a-report-2025
2. EY (2025). 2025 Private Equity Trends. https://www.ey.com/en_us/insights/privateequity/2025-pe-trends
3. EY (2025). How the Drivers of Private Equity Value Creation Are Changing. https://www. ey.com/en_gl/insights/strategy-transactions/how-the-drivers-of-private-equity-valuecreation-are-changing
4. McKinsey & Company (2025). Bridging Private Equity’s Value Creation Gap. https://www. mckinsey.com/industries/private-capital/our-insights/bridging-private-equitys-valuecreation-gap
5. PwC (2025). Next in Private Equity: Trends Shaping 2025 and Beyond. https://www.pwc.com/ us/en/industries/financial-services/library/private-equity-trends.html
6. PwC (2025). What Is the Future of Portfolio Company Value Creation? https://www.pwc.com/ us/en/industries/financial-services/library/future-portfolio-company-value-creation.html