Takeover Branding 101
As the IT industry continues to consolidate, many VARs are expected to merge with one another this year. Companies such as Agilysys and CDW have announced plans to buy up solutions providers as well.
The VAR Guy has never managed an acquisition, but he’s covered quite a few of them over the years. He heard one of the best tips for success during the SynOptics/Wellfleet networking merger of 1994. At the time, SynOptics and Wellfleet executives called the deal a “merger of equals.” But privately, a SynOptics source told The VAR Guy: “Remember, there’s never a merger of equals. Only one corporate culture can survive.” SynOptics and Wellfleet executives never learned that lesson and their business combination never lived up to its promise.
VARs involved in mergers should steal a page from Cisco Systems, which updates a takeover target’s logo, branding and marketing materials the day the acquisition closes. When employees from an acquired company arrive for day 1 at Cisco, their offices are typically filled with Cisco coffee mugs and marketing materials. There’s no doubting who’s in control of the organization going forward.
Other companies use similar tactics. When Motorola completed its takeover of Symbol Technologies on January 9, Motorola immediately became the dominant brand on the Symbol (www.symbol.com) web site. And during a drive by Symbol’s headquarters on Saturday, The VAR Guy noticed that Symbol’s signage had been replaced by Motorola’s. Smart moves. Symbol employees know who’s paying the bills and who’s in charge.
Use the same tactics to speed along your merger’s success.
