Blog
Reputation valuation in the M&A mix: Carlsberg/Britvic
05 August 2024
Here we consider the reputational values and priorities of Britvic and Carlsberg in their merger, drawing on data and expertise from Echo Research, as Expert Witnesses in corporate reputation, and our ownership of Britain’s Most Admired Companies Study and Reputation Dividend.
Since 2010, Reputation Dividend has been measuring the tangible financial value of corporate reputation across the FTSE and S&P. Our analyses indicate that while Britvic and Carlsberg hold significant reputational capital, albeit with Carlsberg's being marginally more potent, both are likely to play a crucial part in the merger’s success in supporting confidence in the market.
Britvic, with its strong reputation for innovation and quality of management, has consistently leveraged its corporate responsibility initiatives to enhance brand value and consumer trust. On the other hand, Carlsberg's reputation has been fortified by its commitment to financial soundness, talent management and global heritage, along with recent strides in environmental sustainability and corporate governance.
As these two entities integrate, their combined reputational assets could create a powerful synergy. The challenge will be to align their particular strengths and mitigate relative weaknesses – management and innovation for Britvic, financial and global prowess for Carlsberg – into a cohesive strategy that reinforces stakeholder confidence and market strength.
The evidence suggests that this merger has the potential to set a new benchmark in the beverage industry, provided that their reputational management is handled with the same rigor as their operational and financial integration. There is £725m upside to the marketcap if they get it right, or up to a cost of -£2,195m if they don’t…
