Combining Company Names And/Or Logos
If two major companies combine, what considerations arise when deciding on the name and/or logo of the new company?
A company’s name and logo (along with the names and logos of any brands it may own) can constitute a significant percentage of its value. This is why intellectual property law protects trademarks.[i] When a company’s name is its primary brand, the choice of a new moniker is particularly important. Numerous studies of postmerger financial performance show that attention to brand pays off. [ii]
When one company buys another, it has 16 basic choices regarding its new name/s or logo/s. (See Exhibit 9.2.)
Exhibit 9 2. Options for Postmerger Company Names and Logos
Co 1 Name Co 2 Name Combo Name New Name Co 1 Logo Co 2 Logo Combo Logo New Logo
|
Co 1 Name Co 1 Logo |
x |
|
|
|
x |
|
|
|
|
Co 1 Name Co 2 Logo |
x |
|
|
|
|
x |
|
|
|
Co 1 Name Combo Logo |
x |
|
|
|
|
|
x |
|
|
Co 1 Name New Logo |
x |
|
|
|
|
|
|
x |
|
Co 2 Name Co 1 Logo |
|
x |
|
|
x |
|
|
|
|
Co 2 Name Co 2 Logo |
|
x |
|
|
|
x |
|
|
|
Co2 Name Combo Logo |
|
x |
|
|
|
|
x |
|
|
Co 2 Name New Logo |
|
x |
|
|
|
|
|
x |
|
Combo Name Co 1 Logo |
|
|
x |
|
x |
|
|
|
|
DELETE ROW |
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|
|
|
|
|
|
|
|
Combo Name Co 2 Logo |
|
|
x |
|
|
x |
|
|
|
Combo Name Combined Logo |
|
|
x |
|
|
|
x |
|
|
Combo Name New Logo |
|
|
x |
|
|
|
|
x |
|
New Name Co 1 Logo |
|
|
|
x |
x |
|
|
|
|
New Name Co 2 Logo |
|
|
|
x |
|
x |
|
|
|
New Name Combined Logo |
|
|
|
x |
|
|
x |
|
|
New Name New Logo |
|
|
|
x |
|
|
|
x |
Source: Alexandra R. Lajoux (2023)
[i] See especially https://www.uspto.gov/trademarks/basics/what-trademark
[ii] “Brand Equity Valuation after Merger and Acquisition: A Review of Evidence,” Journal of Service Science and Management, Vol.16 No.2, April 2023. Brand Equity Valuation after Merger and Acquisition: A Review of Evidence (scirp.org)