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Deciding on a brand name after a merger

On Behalf of | Oct 6, 2016 | Mergers & Acquisitions

Branding is critical to the merger process, especially if each company has already established a reputable image. Many Florida business owners choose either to utilize one of the two existing names or to reinvent themselves under a whole new title. Of course, those are not the only two options.

According to Business Wire, two Florida real estate firms recently took an alternative approach and are now operating one company under both original names. The Keyes Company and Illustrated Properties are two industries leaders, and each family-owned business brings an expansive network and over 40 years of Florida real estate experience. The primary goal of the merger was to exploit shared resources. Therefore, existing management structures will remain, at least for the time being. In terms of branding, both CEOs agree that keeping both titles is the best way to maintain and expand their network.

Branding is a strategic process that typically starts over after a merger. As ABC News points out, however, not all companies are successful. Chrysler, for example, was well known among American consumers, but after merging with Mercedes Brand, many shoppers became confused. Likewise, Britain’s Post Office noticed a huge decrease in volume after changing its name to Consignia. Conversely, companies like Enron are using rebranding as a way to escape a tarnished reputation. Clearly, the goal is not always the same.

Some mergers result in a more diverse lineup of products, while others simply pair two companies with similar profiles. Ultimately, the chosen name should reflect the company’s overall mission and expertise.

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