Challenging Decisions About Branding
During The Post-Acquisition Stage
By: Brian Barlow – President/CEO
6/27/2006
Analyzing the frenzied pace of acquisitions during the past 10 years or so has generated some fascinating results related to branding. Here is a brief overview of our findings and observations.
- White Washed - We were surprised by the number of acquiring manufacturers and investment firms that were originally attracted to their target companies due to the target companies’ strong brand names and marketplace recognition – including recognizable color. Then within a year, many of these famous brands were “white washed,” losing all or most of their former recognition and customer preference power.
- Ooops! – Many manufacturers and investment firms are now reversing their “white washed” product lines and returning them to their original brand names and colors to increase their value. This is especially true if these lines are now “on the block.”
- Kudos To Some – All egos aside, some acquisition-hungry manufacturers have kept all the brand names and colors just as they were. One manufacturer has kept most of the brands of the numerous acquisitions they have made in the quarry industry, and its asphalt side has always had independent names where there was value.
- A Sign They May Sell? – It may be that several mega-corporations that have “white washed” many famous brands in the past might be gearing up to sell off some lines; or it’s possible they at least now see how they hurt the value of their product lines with customers and potential buyers, so they are reversing their approach. We’ll watch and see.
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