Branding Pitfalls & Imperatives for Mergers & Acquisitions
By Sara Tang

The failure rate of mergers and acquisitions globally is high. One of the chief reasons for failure often cited by companies who have undergone this change is that financial and legal matters take precedence over the brand and customer during the integration process. And when these two critical areas of a business are neglected, it can make integration nearly impossible or extremely costly to achieve in the long-term.



Derived from our collective experience working with companies, here are some branding pitfalls that anyone about to undergo or presently undergoing a merger or acquisition should consider and avoid:

Failure to make an objective assessment of relative brand strengths - The Bank of America vs NationsBank in 1997 is taken as an example to examine further.

Emphasis on the Short Term, lacking Future Perspective - Norwich Union vs Commercial Union General Accident in 2000 is taken as an example

Marrying the Incompatible - Daimler vs Chrysler/ IBM vs Lotus in the mid-90s

Lured by the New, Casting Aside Existing Equity - PWC Consulting vs Pricewaterhouse Coopers

So what should a company undergoing M&A do to avoid the pitfalls listed above? Our best advice is to plan early, and evaluate often. Planned and executed well, the prognosis for M&A need not be unnecessarily grim. Rather, it could turn into a unique opportunity to establish a leadership position in the market by setting out a new direction for the branded entity, and clearly articulating the benefits for key constituents.

Download Branding Pitfalls & Imperatives for Mergers & Acquisitions (pdf, 83kb)

Profile of the Writer
Sara Tang is Director of Strategy at The Brand Union, a leading global brand agency with offices in Hong Kong and Greater China. The Brand Union has been at the helm of notable global M&A branding programmes for Credit Suisse, Bank of America (following merger with Nations Bank), Bank of America Merrill Lynch and Allianz Group.