When Karlie Kloss, a name synonymous with Victoria’s Secret runway and glossy magazine covers, stepped behind the camera to helm esteemed fashion publication i-D, widespread excitement was voiced across fashion, media, and business sectors. The buzz behind the sale was understandable.

Demonstrating one of the LAVA team’s signature tactics – thinking outside the box and not going for the obvious solution – seller Vice Media Group favoured Kloss over the typical media tycoon. Shifting ownership from corporate billionaire to a cultural icon, the transaction was celebrated as a potential instigator of a new era in digital media.

However, the subsequent turbulence within i-D, marked by high-profile staff walkouts and a revenue-haemorrhaging shutdown of the website, has captured headlines and serves up a stark reminder that even the most glamorous takeovers can encounter derailing hurdles.

We take a look at some of our key learnings from the i-D acquisition saga:

Communication is key

One of the most glaring observations from the Kloss-i-D fallout is the critical importance of an effective post-acquisition communication strategy.

The changeover phase should have been a chance to build on the sale’s hype, leveraging Kloss’ extensive media reach to create a narrative of excitement and onboard stakeholders, writers, brands, and readers as active advocates for the magazine’s new chapter. Instead, much like Musk’s takeover of Twitter, confusion and scepticism dominated discussions, with discourse centred around staff exits and the website’s shutdown rather than the business’ next phase.

This oversight underscores the necessity of clear communication both during and after transitions, not only about the change in ownership but also regarding the future vision and roles within the new setup. It points to the need to involve experienced teams in shaping post-deal communication strategies to guide the narrative positively and own a seamless transition that fosters confidence and enthusiasm among all stakeholders.

Do your cultural due diligence

Kloss’s takeover also highlights the importance of making sure deals are a good financial and cultural fit.

i-D has an extraordinarily strong identity, rooted in avant-garde fashion, art, and youth culture. Like any acquired company with a strong workplace culture, it demanded a careful approach by Kloss’ team to ensure staff were aligned with the organisation’s new direction.

The resignations of key figures, notably editor-in-chief Alastair McKimm, demonstrate the potential for cultural friction when the existing ethos of a team and the incoming vision fail to merge seamlessly.

Tackling this issue goes beyond merely aligning business strategies; it demands genuine engagement with the individuals who have contributed to a company’s success. A real dedication needs to be shown to maintaining or evolving distinct cultural attributes that are meaningful to the team left behind.

For i-D going forward, it’s extremely important for the new team to foster a unified atmosphere where seasoned insights of the original team and innovative ideas of new contributors can blend, keeping the magazine at the forefront of cultural trends.

Think about those you leave behind

The aftermath of an acquisition is a critical time for ensuring the team you assemble is fully invested in and excited about the company’s new direction. The departure of established members from i-D further emphasises the need for proactive and united leadership in guiding a brand into its future.

Ideally, a transition team, set up pre-acquisition, should always be fully prepared to seamlessly continue the brand’s legacy while infusing its growth with fresh ideas.

Now, i-D’s challenge is to attract talent that not only resonates with its unique culture but is also committed to the strategic goals set by the new ownership.

Final thoughts…

The Kloss-i-D acquisition is a live warning to anyone in the midst of deal-making to carefully consider what happens after completion. Company reputation, workplace culture, and future revenue are just a few of the potential victims of a half-hearted or mismatched post-acquisition strategy.

If your team can incorporate elements such as communication strategies, cultural alignment, and personnel transitions into your deal, you’ll be making big strides in safeguarding and future-proofing a transaction that’s taken up so much of your team’s time, energy, and resources.

As for i-D magazine, its potential for cultural and sector influence is huge. How will the Kloss team turn it around? We’ll be watching closely.

For more M&A insights, follow the LAVA team on LinkedIn here. If you’d like to speak directly to our team about how we can help you navigate the pitfalls and opportunities of each phase of your transaction, get in touch with us today.