|
Cutting Marketing Budgets is Costly: A Strategic Risk for Cross-border M&A Firms
by Gundo Kahle, CEO
CBA Cross Borders Associates
In the world of cross-border mergers and acquisitions, visibility, trust, and continuous engagement are essential. Yet in periods of economic uncertainty or fluctuating deal volumes, many advisory firms instinctively look to reduce marketing expenditure. The intention is understandable: marketing feels discretionary, especially when transactions slow. But for M&A firms—particularly those working across multiple jurisdictions—cutting marketing budgets is not simply unwise; it is strategically damaging.
Cross-border M&A thrives on networks, credibility, and a consistent presence in global markets. Reducing marketing activity undermines each of these pillars.
Global Visibility Shrinks Faster Than You Think
In cross-border advisory work, firms compete not only locally but against an entire international ecosystem of advisors, boutique firms, and sector specialists. Visibility is critical. When marketing spend is reduced, a firm’s profile fades not just in its home market but across every region where it hopes to win mandates.
Meanwhile, competitors who maintain or increase their marketing—particularly those promoting sector expertise, geographic coverage, or proprietary tools—capture a disproportionate share of attention at lower cost. In a global marketplace where buyers and sellers search across borders, presence is power.
Rebuilding international visibility after a period of silence is significantly more expensive than maintaining it consistently.
Deal Flow Pipelines in Cross-Border M&A Have Long Tails
Cross-border M&A mandates rarely arise spontaneously. They are the result of years of relationship building, careful market positioning, conference participation, targeted content creation, and continuous outreach. Cutting marketing interrupts those processes.
The impact is rarely immediate. For several months, the pipeline may appear stable because existing relationships continue to generate activity. But in the quarters that follow, enquiry levels decline, intros from intermediaries fall, and inbound opportunities slow. Cross-border deals already involve long lead times—often 9 to 24 months from first conversation to closing.
Click Here to Read Full Article
|