During Mergers or Acquisitions, Don't Forget Branding

Mergers and acquisitions are a common side effect of maturing markets. AT&T/BellSouth, Delta/Northwest, and AOL/Time Warner are just a few of the recent, high profile cases.

Whether or not these pairings are beneficial is up for debate, but one thing that is always true about mergers and acquisitions is that they are fraught with all kinds of difficulties. There is much to figure out when combining two entities, from operations, HR, and finance, to activities as seemingly routine as delivery. Usually, it is not until all of this has been addressed that people begin to think about marketing. And then eventually, branding.

It should be done the other way around. Branding should come first. Only then should a company worry about marketing, advertising, finance, operations and HR.

Branding should always come first and for several reasons:

1. It's all about the big picture.

And it's the big picture from the client’s perspective. Why are you even considering this merger at all? What will this merger do for your clients? Your clients are your lifeblood, and the merger's success will rest on whether they see it as a benefit to them.

2. Set the big things first.

Because branding is about the big picture, it encourages you to think clearly about high-level topics instead of focusing on the small details. These high-level topics, such as positioning and the combining of cultures, are essential for developing a solid brand strategy for the merger or acquisition. However, it's very easy to get bogged down in the minutia of details. So, set the big things first. It will provide the groundwork for easier, lower-level decision-making later.

3. Your brand is important to your clients (and prospects).

Your brand is your customer-facing image. Chances are, you're performing the acquisition because there is some real benefit to your clients. And you're likely trying to get new clients. In this case, you need to think very clearly about why it is they do what they do. Why would a client find the new products or services interesting or compelling? What do they care about? Branding answers these questions.

Bottom line

It's very easy to get caught up in the details when embarking on a merger or acquisition. However, focusing on the brand should be a top priority; it will lay the groundwork for all decisions moving forward.