Landor Looks at Merged Brands and Rebrands

Zach Brooke
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Key Takeaways

What? 74% of all companies rebranded assets within seven years of acquisition.

So what? M&A success is often defined by transitioning brands to reflect their new ownership status.

Now what? Determine the business straegy behind a merger or acquisition first. Whether it's to leverage the acquired brand, it's product or service capabilities will determine how and when a rebrand takes place.

Oct. 27, 2017

Landor's in-depth, quantitative analysis of merger and acquisition branding activity reveals smaller deals are more likely to rebrand

The "Landor M&A Brand Study" is an analysis of S&P Global 100 M&A behaviors over the past 10 years, which found that 74% of all companies that underwent a merger or acquisition rebranded assets within seven years of acquisition. 

Landor reports that M&A success is often defined by transitioning brands to reflect their new ownership status, but consideration is seldom given to this area until after a deal is finalized.

The study was led by Landor's executive director of financial services, Louis Sciullo. He took some time to discuss results with Marketing News. 

Q: Is there an ideal time to rebrand an acquisition?

A: The simple answer is no. Many brand agencies will advocate for an immediate rebrand for companies that have a master brand strategy. At Landor, our view is that each transaction requires more careful consideration that aligns with the motive for the purchase and its synergy with the acquirer. There are also amortization considerations that affect the acquired brand’s destination in the portfolio over time. This is something often overlooked by branding professionals until they bump into it in the middle of a rebrand attempt.

Q: Is there anything you saw in the study that suggested whether a rebrand was successful or not? What determines the success of a rebrand?

A: This is a good question and one we’re asked often in our line of work. The truth is that success is determined by the purchase strategy. Every other decision flows from that goal, including how branding can help deliver the strategy. Brand strategy should follow business strategy, so there is no one-size-fits-all solution. We always advise companies to seek out the right option for their specific business—not a textbook solution.

Q: What was the primary factor influencing whether or not a company would be rebranded post-acquisition?

A: Just as every transaction is unique to its context and complexities, ...

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Author Bio:

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Zach Brooke
Zach Brooke is a staff writer for the AMA’s magazines and e-newsletters. He can be reached at zbrooke@ama.org or on Twitter at @Zach_Brooke.

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