After the Pitch by Adrian T. Marable

Author:Adrian T. Marable
Language: eng
Format: epub
Publisher: Beloda

Acquisition

Being acquired by a company or individual is a less stressful option. Since you've been through the pitch processes and due diligence, you'll be doing the same activities. Acquisitions can come from individuals, VC, or other companies. You often hear the words "merger" and "acquisition" mentioned synonymously however they have two different meanings. In a merger, two companies have synergies with one another, and they come together to form a new company. Consider BB&T and SunTrust Banks coming together to form Truist Bank. The two companies believed the merger would help their growth strategy, so they joined forces. In 1998, Exxon Corporation and Mobil Corporation not only merged companies but their name became ExxonMobil. It's still known as one of the largest mergers in U.S. history. Sirius and XM Radio did the same ten years later with what is now SiriusXM. They also acquired Pandora in 2018 but kept the Pandora brand.

Larger companies may acquire a smaller one without merging. The larger company or the company with the best brand recognition keeps their name in these cases. When Sprint acquired Nextel, kept Sprint’s name. The only remnants of Nextel was their colors black and yellow. WeWork acquired Naked Hub in 2015 to expedite its expansion of co-working locations but left the Naked Hub name behind.

Sometimes in acquisition, the dominant company discerns there is more benefit in keeping the companies separate, or at least their brands separate, and operating in a joint venture type of way. Financially, brand recognition helps companies keep the brand engagement and revenue of the company increasing. Think of Facebook and Instagram, Disney and Pixar/Marvel, or Amazon and Ring. These companies are brands consumers know and trust. To rebrand is time consuming and costly to the company. It wasn't broken, why fix it?

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