Portfolio Simplification Services

When two companies merge, one of the thorniest challenges is determining the best approach for rebranding the combined entity. The decision on whether to maintain separate brands, combine them, or go with an entirely new brand can have far-reaching implications for customer perception, internal culture, and long-term business success. As a brand strategy expert who has advised numerous tech companies navigating post-merger or post-acquisition rebranding , I've seen firsthand the importance of carefully evaluating the options and making the right choice for your unique situation. In this article, I'll outline the key rebranding approaches available and the factors to weigh when deciding the best path forward. Rebranding Strategies for Merged Tech Companies 1. Combined Brand When the merger involves companies of relatively equal size and stature, a combined brand approach is often the preferred option. This involves taking the strongest elements of each legacy brand and fusing them into a new, unified identity. A great example of this is the 2022 merger between Salesforce and Slack. The two companies, both giants in the enterprise software and collaboration space, came together to form a powerhouse in the business technology market. Rather than Salesforce simply acquiring and absorbing Slack, the companies opted for a combined brand strategy, unveiling the new "Slack from Salesforce" identity. This approach allowed Salesforce to leverage Slack's beloved brand recognition and user-friendly reputation, while Slack benefited from Salesforce's established enterprise reach and resources. The new combined brand projected a forward-thinking, innovative image that appealed to both companies' customer bases. The benefits of a combined brand strategy include: - Leveraging the strengths of both legacy brands - Avoiding the perception of one company "winning" over the other - Establishing a fresh, future-facing identity for the new organization However, executing a successful combined brand can be challenging, requiring careful navigation of cultural differences and stakeholder buy-in. 2. Co-Branding In some cases, retaining both legacy brand names can be advantageous, at least in the short-to-medium term. This co-branding approach allows the merged company to capitalize on the existing brand equity and customer familiarity of each entity. A prime example is the 2016 merger of Dell and EMC. The new company, Dell Technologies, maintained the well-known Dell brand for its PC and consumer divisions, while EMC continued to market its enterprise storage and data management solutions. This allowed Dell Technologies to appeal to a broad range of customers while preserving the distinct brand identities. Co-branding can be beneficial when: - The legacy brands have strong, differentiated positions in the market - Retaining both names reduces customer and stakeholder disruption - The merged company plans to maintain distinct product lines or business units The drawback is that co-branding can be more complex and costly to implement and manage long-term. 3. One Brand Subsuming the Othe r In cases where one merger partner clearly dominates the other in size, market share, or brand recognition, it may make sense for the stronger brand to subsume the weaker one entirely. This approach simplifies the rebranding process and allows the dominant brand to fully leverage its existing equity. An illustration of this is the 2014 acquisition of Beats Electronics by Apple. Rather than maintaining the Beats brand, Apple fully integrated the company and its products under the Apple name and visual identity. This allowed Apple to seamlessly fold Beats' technology and customer base into its own ecosystem. Subsuming a weaker brand can work well when: - There is a stark disparity in brand power and awareness between the merger partners - The dominant brand is a better fit for the combined company's target customers and positioning - Maintaining separate brands would create more confusion than clarity However, this approach does risk alienating customers loyal to the subsumed brand and can be challenging for the absorbed company's employees to accept.  Evaluating the Right Rebranding Approach When determining the optimal rebranding strategy for your merged tech company, there are several key factors to consider: 1. Relative Brand Strength and Equity: Assess how the brand power, reputation, and customer loyalty of the merging companies compare. This will help determine whether a combined, co-branded, or dominant brand approach is most appropriate. 2. Market Position and Product Fit: Evaluate how well the legacy brands' market positions and product/service offerings align or complement each other. This can inform whether combining, separating, or transitioning the brands makes the most strategic sense. 3. Cultural Compatibility: Assess the cultural fit between the merging organizations. A combined brand may be more viable if the corporate cultures are closely aligned, while separate brands could be preferable if there are significant differences. 4. Customer Expectations and Preferences: Understand how your customers currently perceive the legacy brands and what they would expect or prefer in a post-merger identity. Avoid choices that would significantly disrupt or alienate your install base. 5. Long-Term Growth Potential: Consider which rebranding approach best positions the combined entity for future success, market expansion, and continued customer relevance. Ultimately, there is no one-size-fits-all solution — the optimal rebranding strategy will be unique to your specific merger circumstances. By carefully weighing these key factors, you can determine the best path forward to create a powerful, cohesive brand identity that resonates with customers and drives lasting business value.