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Merger 2 brand means creating more value for 1 brand and exclude the value of 1 other brand names. After the merger, it usually only about 1 brand to survive. For the purpose of the merger is to increase the total value of the brand that, so any activities in addition to mergers need to be evaluated Financial, activities, legal, legal personnel, technology and many other factors.
When two big brand names on them living together under one roof by the rules “M & A (Merger & Acquisition – mergers and buy back), both of which sometimes accidentally forgot to lose those loyal customers -” moi situation the top “of them.

Listen, it may seem unbelievable but when there is so much truth. Company mergers may be stronger, larger, but it does not mean anything if the expectations of customers is not reacted.

In 2005 is considered to be a year of the merger home crowd, especially the SBC to AT & T management with cost 16 billion USD, followed by the amount of 57 billion USD by P & G read out to get Gillette. According to CNN this is Year 4 by the mergers with a total amount up to more than 1 hundred billion dollars.

When the intangible property contributed to the value of corporations in the 21st century, the pricing of the brand, especially when evaluating assets such as brand name “intangible property” on the papers is one of the factors are very important in the “marriage contract” M & A. But it is also unfortunate when most everything belongs to the brand is invisible so no one clear way to determine a price brand.

It is important first to the parties involved, according to opinions of Suzanne Hogan, consulting firms Mercer Lippicott brand, is understand the strategy of the brand before corporations started to sign any contracts M & A Because if you do not understand the value of certain brands, they can “het price” brand to take lợn clouds while the reality is not the case.

These important events with assets worth ne trademark of AT & T may be viewed as a typical case of a business is successful but retain a brand extremely worthwhile. Khoan discussed the brand AT & T are too high to be excessive or not, has announced that in future the name AT & T surely will also appear after a long long into the SBC merger.

In building the brand, it’s important should remember the main point is to understand the strengths and weaknesses of the brand merger, to which can evaluate the degree of compatibility with this brand of strategy brand stand out to buy again. Only when assessing the correct “real power” can draw upon the handbags “brand architecture” (from a gender expert to talk about how to brand and the brand names of food match the star) and media plan information.

However, although there are a lot of mergers and buy the brand name takes place (this number has increased and a half in 2005), but the number of companies considered buying back the light is still highly significant to business wow. Only when there is a risk of experiencing crisis is threatening to brand names in the list are five or le cause difficulties for media brands to their core. Usually the professional brand consultant is to institute arrangements to jumble the brand after buying back the size.

In addition to duties as the bags full of characters key leaders and the owner of the bank, the benefits of the purchase and merger brand is create value for shareholders. And while the actual benefits of the service parentheses hand for this customer is also the last significant issues in dispute, then many people in the industry still believe that customer / consumer is not the object of interest in the the M & A.

According to comments of Ken Fenyo, consulting management and building brand Prophet: “The leaders are often too interested in buying back contracts with all costs they must pay … so that people received any consequences which then is the customer. Just study the merger of the successes and failures, we can easily see that the differences between the two main parties know is a real concern to benefit customers, but only know one side looking for attention privacy interests of corporations and of themselves. ”

Usually when the report of the event M & A often appears to promise them a life “happiness to the top of silver that Long” of the brand. The purpose of the core M & A is to present the synchronization between the two businesses and for people to see that, “one should not make plans for kindergartens, two (or more) plants should be re-chum rock mountain high”, or by speaking Fenyo is a way of “must prove that 1 +1> 2″. The marriage between Cingular and AT & T Wireless is for the purpose of pursuing happiness as above.

M & A also helps eliminate the brand name and cause less coi core brand becomes stronger, or expressions of David Harding and Charles Tillen of Bain & Co., “Shrink to grow”. Whether selling is one part of a business for people outside tricked or leave the brand is no longer consistent with the strategy of developing them, but they all contribute in strengthening the power of the brand core.

A probe over 250 leaders are directly involved in the contract by M & A consulting firms Bain & Co. made to find reasons to have the force turbidity occurred after “marriage” is due to “ignore the challenges when the merger” or “highly appreciated the ability to excessive harmonious”.

In the case of M & A of Kmart and Sears took place in 2004, many people have seen that this is not what a different contract real estate and Wagering with each other to see one of the two named Kmart and Sears, the name will soon play in the game . The value of the contract is estimated at up to 12.3 billion USD and has pushed the stock price up 22% Sears and Kmart to 16% shortly after the merger was announced. And since Kmart itself on standing up after the bankruptcy from May 5 / 2003, price of Kmart shares has increased to 700% up to spring 2005.

The numbers just seem to hear if very impressive, but the names and Kmart is still much less flyblown in the market. With plans to sell a product line of Kmart with a product line of Sears, most people still predict that soon something is later named Kmart will also disappear as the system identify the brand names of both the import generic again.

Some cases exit has also been forecast before. Do not want their products to be classified  at Kmart, Nike has quickly ended the contract with Kmart and continue for their goods at Sears until autumn 2005.

Future is here to attend the opening of Sears Essentials with a combination of many different brands at Sears and Kmart, along with the product more advanced. According to Chicago Sun Times, Sears is targeting to set base in the urban rich than to switch stores under the system to Kmart and Sears Essentials to target customers with annual incomes around to 80000USD up (of Kmart customers with incomes around 40.000 USD/year).

In short, when together sign “contract marriage”, both parties must understand the brand assets and ability to harmonize as well as removing the aspects or elements of integration, with such a brand of new hiieu can live together in harmony under one roof.

Tags: Brand Name, Merger & Acquisition, Tern brand

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