Include marketing expert in merger negotiating/process team

Mint June 20, 2007, page 21

Article by Dr. Richard Etteson, Professor, Thunderbird School of global Management, Glendale, Arizona and M.r Jonathan Knowles, founder and CEO of type 2 consulting in New York.

Our research with managers involved in 200-plus M&As shows that companies don't think much about how to present the merged company to customers, employees and investors. Including a senior marketer at the M&A table will address this blind spot-and also generate three benefits for the negotiating team.

Selling the brand: marketer helps to ensure that the new entity's corporate brand is chosen based on strategy rather than expediency and would explicitly consider how the company can communicate the benefits of merger to customers, employees and investors.

Finding key assets: A marketer in the merger team would look at "relational assets" that drive cash flow, such as corporate reputation, goodwill and the brand itself-vitally important factors that often get overlooked in a merger deal.

Looking beyond deal breakers: A senior marketer can look at "deal makers" - factors that will enhance the chances of success after merger, such as the strategic use of the corporate brand. the marketer would focus attention on ways in which the new company could deliver more value to customers.