In light of Microsoft’s historic acquisition of LinkedIn and our client Apical’s acquisition by ARM, it’s opportune to consider the important role PR can play in helping companies achieve a successful exit, whether that’s an IPO or an acquisition.
PR is a critical driver on the road to an exit for two reasons: 1) It raises awareness of your company with potential acquirers or investors; and 2) coverage can shape public perceptions positively, leading to an increased valuation.
As companies leverage PR to help achieve an exit, they should look to hit the following milestones:
- Secure marquee customers & showcase key customer wins – Our recent client VoloMetrix, which was acquired by Microsoft in September 2015, built an impressive number of client partnerships with well-known companies, including Facebook, Symantec and Qualcomm. Amplifying the win(s) through case studies, a mention on the company website, or a momentum announcement to showcase a series of customer wins can drive awareness of a company’s success in the market and validate its product or service offering(s). It’s important to note that addressing PR during the contract negotiation process between the company and the client can make it easier to publicly announce clients down the road.
- Demonstrate executive & category leadership – Companies headed toward an exit need to have established CEO leadership. Developing a solid thought leadership platform and cultivating relationships with key media can go a long way toward these ends. For example, VoloMetrix’s CEO built his thought leadership platform on big data in the workplace, in part, through contributed content in Xconomy, Entrepreneur and Harvard Business Review. In addition to demonstrating executive-level leadership, it’s important for companies to establish leadership within their respective categories – on a quarterly basis, is the company’s share of voice waxing or waning?
- Showcase strategic partnerships – Cultivating and showcasing strategic partnerships demonstrates company viability, longevity and interoperability. For example, Apical partnered with Tend, a vision-as-a-service platform, to bring reliable people detection to smart home cameras. This partnership elevated both companies and enabled them to bring their products to market more quickly. LinkedIn has engaged a number of partners, from EY (formerly Ernst & Young) to a host of startups, including Rallyverse. LinkedIn also offers a Partner Program, which provides partners with additional API functionality and data access.
- Drive valuation through data – Troves of data can be tremendously attractive to potential acquirers or investors. According to Melissa Parrish, vice president and principal analyst at Forrester Research, “With deep access to the LinkedIn social graph, Microsoft will be able to power new capabilities for accelerating work and collaboration across an employee’s personal connections inside and outside the firm.” According to LinkedIn, its data is “an economic graph,” a digital map of the global economy – of how professionals are connected and who works where. Though LinkedIn’s $26-billion price tag seems like a steep price to pay for a social network, according to Recode, Microsoft “got a great deal on LinkedIn” due to LinkedIn’s data.
PR can play a powerful role in laying the groundwork for an exit by highlighting a company’s success in the market place, elevating its leadership team, and showcasing its IP and data. But PR isn’t over once the deal’s signed – PR plays a pivotal role in communicating the exit to the public and to employees.