How branding affects post-merger health of firms | Outlook Business
Home  /  Strategy  /  Insight  / How branding affects post-merger health of firms | AUG 17 , 2013

Insight

How branding affects post-merger health of firms
Will the choice of corporate branding after a merger help secure the loyalty of employees, customers and investors?

Team Outlook Business

When the two greats of the global publishing market came together to form Penguin Random House recently, who would have thought their double-barreled identity would add to their brand value instead of diluting it? A study by Natalie Mizik, Jonathan Knowles and Isaac M Dinner says that the choice of corporate branding after a merger is very important as it can help secure the loyalty of employees, customers and investors. Analysing data from 216 large mergers, the researchers said that three branding trends emerge — where one company’s identity was discarded, where both firms operated under their own identities, and where both their identities were amalgamated to create a new brand. They found that brands in the first two categories underperformed compared with the amalgamated category.

 

Title: Value implications of corporate branding in mergers

Source: Social Science Research Network

Here's your chance to read the latest issue of Outlook Business for free! Download the Outlook ​Magazines app now. Available on Play Store and App Store
On Stands Now