Acquisition of a Competing Brand – Some Issues on Integration and Conversion

Whether for issues of market share, possible shut down or reasons associated with efficiency, the acquisition of a competing brand represents an intellectual challenge for the management team charged with integration.

This is especially so when protected territories are contractually granted, often for significant periods of time post integration, which is often the case in franchising. There remains the distinct possibility that, notwithstanding common ownership and management structures, the brands will need to retain their identity in the market for a significant legacy period. This article addresses some of the issues facing management that require careful consideration to ensure that the benefits of acquisition or merger are realised.