Food and beverage companies that preserve the equity of the brands in their newly acquired product portfolios will gain the most value from their merger. Smart executives know that companies own trademarks, consumers own brands. Yes, that s why when companies initially present filings to the competition authorities they are very open about what they intend to sell. We ve seen this in several instances. Companies need to put caps on their market share if they are to satisfy regulatory concerns.
Most failures take place due to the lack of planning.
Mergers take time. Failure to put steps in place to mitigate risks causes mishaps. Ultimately this causes an inability to deliver to the customer. When this happens, brands lose share, or worse, disappear. If a merger does not produce promised results it will weaken the company, reduce shareholder value, and basically put the company at a great disadvantage in the marketplace.