Question

Topic: Branding

Annoucing Absorbing A Brand Via Asset Purchase

Posted by Anonymous on 7/3/2012 at 11:37 AM ET 125 Points
"Acme Company" is buying the assets of a much smaller "XYZ Company" and plans to only use the "Acme" brand over the long term. The "XYZ" name has some recognition in the market place that Acme doesn't want to lose initially. In terms of messaging to clients and customers, Acme would want to say that XYZ is now part of Acme, for a transition period. Becuase this is an asset purchase, Acme is not acquiring the XYZ company name. Acme's lawyers may object to "XYZ is now part of Acme" language.

How does Acme brand or message this during the transition? Anything better than "Acme, in partership with XYZ,..."
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RESPONSES

  • Posted by Gail@PUBLISIDE on 7/3/2012 at 11:51 AM Accepted
    You said it yourself -- first you have to consult with attorneys before you make any name moves.

    Beer companies are popular for these kind of acquisitions. The purchaser simply puts out a release and informs media and the public that it's acquiring XYZ brand. Some of those brands keep their original names for the long term and others become a version of the bigger brand. You have to determine what the market value is in each, and of course, consult attorneys for both.
  • Posted by Peter (henna gaijin) on 7/3/2012 at 9:55 PM Accepted
    Is the XYZ company name and product name the same?

    If so, often you would keep the old name for a while, but say it is "an Acme company". Then slowly change it over to drop the XYZ name (or just keep it as a product name).

    If not the same, you might be able to transfer over the XYZ product name to be under your company name right away. Keeping the product name could help you keep the brand equity they had built up.

    But if you didn't buy the name(s), then you may not have a lot of options. Consult attorneys.
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