In the era of imagery nowadays, brand becomes such important asset that amazes customers and determines the success or fail of a company. No wonder then, tough brands become bone of contention among businessmen and even it includes sale and purchase stuff in order to be a shortcut to reach success.
William Shakespeare said what is in a name? A rose is still fragrant whatever its name. But its proverb might not be suitable for this case. Brand is such representation and something associated to a product including the quality, price, value and even prestige. A slice of a name means a lot. Brand is such an allure, a charm and also difference of a product to another. This brand will bond people until they adore, hunt and buy a product. Without a brand embedded strongly to the customers, a product is only a commodity with a low value even though the function is the same. But, thanks to a brand, the same type of product can have very different price. So, now rand becomes the most important asset of a company since it can attract a lot of more profit.
Stephen King, CEO WPP Group, London defines a product as a good produced by a factory and brand is something looked for by customers. Products are easy to copy but a brand has its uniqueness and also value-added significantly to the product. A product is easy to get fade meanwhile a brand will stand along time goes by. Just take GE (General Electric) and Coca-Cola for instance. The two brands can withstand until hundred years.
Building a robust brand and able to attract buyers to buy them sincerely is not easy. It needs a big effort and long time to prove the greatness of the brand and take it on the point that will give you unlimited profits continuously. As a result, to gain a good brand, people are no doubt to buy a certain brand, acquisition all or a half of a stock company or simply establish a partnership with the owner of the bright brand. These third patterns are often applied by a company in order to master or at least feel the vantage from the brand.
Acquisition a certain brand or the company as the owner of the brand is the shortcut in an-organic growth strategy. Rather than waiting for research and development for a new product, release it on market, enlarge it until becomes so bright, it is better acquisitioning an already well-known brand and has loyal customers. That will give you much faster growth and less risk. Moreover, there is possibility to get failed in releasing a brand.
So, it is logical when some businessmen are more interest to acquisition some outstanding brands. As the consequence, the price of the brand is expensive regarding the value on consumers’ eyes, the market, the loyalty of the consumers, the potency to take future consumers as well as the goodwill.
The question is if the brand is bright and full of potency continuously, why the owner wants to sell it? There are many reasons behind the decision. It can be because there is a conflict on the family owner, lack of capital, getting financial problems, in need of strategic partner or even because the owner wants to switch to another business which is completely different.
Whatever the reason, they must hope that the acquisition is win-win solution for the both sides. So, the both sides should think deeply and aboveboard. The brand owner should calculate whether the price is worthy to the brand value and whether they are ready for the equivalent. If it needs to get a partnership, they should investigate whether the partner candidate is strategic for strengthen the business and able to give more advantage rather than disadvantage. So is the buyers, they should calculate in order to avoid any regret later.