Are You Squandering Invisible Assets?

LinkedIn and Facebook are electronic rolodex’s (did I just ‘date’ myself?) that can visually show how ‘connected’ people are – but what happens to people’s connections in the wake of the acquisition?

Ideally, as part of the pre-acquisition research, you would develop a feel for connections – industry, associations, advertising, buying – so you don’t jettison valuable connections unnecessarily or accidentally.

But in the trenches of integration, the acquirer’s team tends to (all too easily) assume that what they do and how they do it is superior to the acquired. This is a dangerous assumption.

Are there executive members of the acquired’s team in key trade association positions?
What media-buy contracts have the acquired’s team negotiated?
What industry connections to key suppliers are in jeopardy if you consolidate buying?
What history, loyalty, and goodwill to people take with them when they are let go?

I think everyone in business has heard, “Our people are our greatest asset” about a gazillion times. But in the heat of an acquisition, are people (and their connections) weighted with the appropriate value?

Contributed by Damon Kocina
Strategic Graphics, Inc.
Improve your impression
www.StrategicGraphics.com
www.LinkedIn.com/in/DamonKocina

Have something to add? Your own business wit?

Got a different point of view, want to play devil’s advocate, or just think we’re all wet? Post your experiences or examples.

Brand Management in an M & A Environment

         

Brand Management in an M&A Environment

In a solid and well-managed integration, prior planning of branding and transitioning customer loyalty and name recognition is a thoughtful and deliberate process. Leadership makes the time for careful consideration of how to maximize the brand equity and retention while removing ego from the equation.

Now lets talk reality. Have you ever seen the dominant player in a merger or acquisition impose their branding even when the product already has strong market share and loyalty? 

I’ll assert that the ego’s involved were bigger than the combined annual revenue of both companies.

There are too many variables for there to be one single solution or ‘best’ way to integrate brands. 

Consider the market – is it local, regional, national? (e.g. Micro-Brewery brand may not translate to a national market)

Consider the target demographic – are they fiercely loyal? (e.g. Apple Computer)

Consider the future – which brand is better positioned for the inevitable changes in the market place? (Sprint’s CDMA technology or Nextel’s iDEN technology)

In November of 1998, when Norwest Corp officially acquired Wells Fargo, the decision was made to use the Wells Fargo brand. As a native Minnesotan and Norwest customer, I had more affinity for the Norwest brand. But a dispassionate review of the facts shows that the right decision was made. Wells Fargo had a more extensive and storied past and was perceived to have better traction in a national market.

It might be that the driving force behind the merger or acquisition is about technology or distribution channels – but at some point, that technology or channel will be marketed to customers. So I’ll leave you with this:

No customers. No revenue.

Know customers. Know revenue.

Contributed by Damon Kocina, Owner, Strategic Graphics, Inc.

Strategic Graphics emphasizing an integrated design formula to tie Branding, Positioning, Print, Web, Trade Journal, and Trade Show events into a cohesive message and presentation.

 

Have something to add? 

Got a different point of view, want to play devil’s advocate, or just think we’re all wet? Post your experiences or examples.