Glossary of Branding Terms

IPO branding

What is IPO branding?
The development of a brand strategy and corporate design in connection with the initial public offering of a company (IPO). 

What are main challenges in IPO branding?
An IPO or spin-off of a business unit does not only involve complex legal aspects but also challenges for brand management. Far-reaching questions have to be answered under extreme time pressure, under strict confidentiality. A structured IPO or spin-off branding process that addresses all relevant questions along central KPIs (key performance indicators), such as reputation and profitability, helps.

How to make IPO branding a success?
In addition to extensive experience in branding on both the company and agency sides, three factors are the key to success in IPO branding: 

  1. Early consideration of brand related aspects along the IPO process, ideally in the preparation phase for the IPO.
  2. Structured planning of the necessary sub-projects along an immovable roadmap. This also includes a triage of requirements that must be resolved before the IPO for legal and communicative reasons – and tasks that can be handled in a follow-up phase to the IPO.
  3. Extremely fast decisions on the company side. 

Which branding elements have to be implemented at the time of an IPO?
This depends on the type of IPO. In the case of an existing company going public, all the necessary elements such as a name, logo and corporate design will be established already. However, in such situations, the IPO can be used to send a signal internally and externally through a brand refresh. This decision subsequently influences the branding roadmap.

In the case of a spin-out, where a division of a company is floated on the stock exchange as an independent company, the spin-out contract defines the minimum branding elements required to ensure that the two future companies can be clearly distinguished from each other. These can include, for example: