“Invest time to sort out trademark issues that are often overlooked”

MP Ramachandran, CMD, Jyothy Laboratories on five ways to ensure a successful post-merger integration

Published 6 years ago on May 17, 2018 1 minute Read
Soumik Kar

Ensure cultural alignment: Cultural differences in your organisation and the one you are buying must be studied well in advance. Employee psychology of the company being acquired needs to be understood. It is they who have to adapt themselves to a new organisation, and thus, must be reassured. 

Fix financial issues first: Taxation-related issues such as high dues payable by the seller must be made clear at the time of due diligence. Keep an eye on the bigger settlements and indemnity agreements, if any.

Get to the bottom of distribution: Chalking out what is to be retained from the acquisition’s distribution system can be tedious. Distributor associations are likely to raise objections if drastic changes are imposed. It is, thus, necessary to keep only what complements your own company to ensure a smooth flow in the distribution channel.

Focus on legal compliance: Intellectual property is of utmost importance and the buyer needs to check if everything has been transferred properly. Invest time to sort out trademark issues, which are often overlooked. 

Identify the brand’s ethos: Understanding what the brand stands for will go a long way to tailor successful communication strategies. One can make changes, but only after having a good grasp of the brand equity and the reason for its success.