When there is a merger or acquisition between companies, a branding reassessment is needed. The dynamics of the acquiring company and its new brand need to be established. If your brand is navigating a new merger or acquisition, then read on to learn three ways to create a new brand strategy.
When deciding how to rebrand a newly acquired company under the umbrella of your own company, there are many variables to consider. Your brand strategy may differ depending on the size, brand value and financial state of the acquired company relative to your own. It is often smart to rebrand an acquired company when it is failing financially, or poorly managed. However, even when the company is in financial shambles and needs restructuring, rebranding may be unwise if it has a positive reputation or dominates its niche. In this scenario, it may be best to rebrand your company instead, to take advantage of the brand value and power of the acquired brand.
When one company acquires another, the acquiring company needs to decide whether to keep the brands separate or to merge them. When both brands are within the same industry, they are easier to merge. However, when both brands are in different industries, then it makes more sense to keep the branding separate. Separate branding can help prevent the company from appearing to monopolize an industry.
Joint ventures, also known as corporate spin-offs, are an efficient way for two companies to combine their strengths for mutual benefit. One option is to create a new product together or, to combine elements of each of their brands to work towards a common goal. However, corporate spin-offs present a number of strategic challenges that will have to be navigated. Both companies must decide if they are going to act as separate entities and work under a mutually agreed-upon set of guidelines, or if they are going to establish a new business entity with equal ownership. Whichever they decide, they showcase each brand, and each company gains more exposure and value. Whichever they decide, they showcase each brand, and each company gains more exposure and value.
When a merger or acquisition occurs, the only way to know how to create a brand strategy is to clarify your goals before taking action.
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