Every acquisition provokes a branding decision—should the acquirer absorb the acquired business by renaming it
under its ownname to convey to themarket thatownership and theway of doing business has changed, or should
it allow the acquired company to continue trading under its old name so as to avoid damage to its existing
customer franchise? This is a complex management decision but one which apparently receives little attention.
This paper draws on the B2B branding andM&A literatures to create a model of brand equity transfer. The model
assumes that rebranding of an acquired company under the name of the newparent can yield positive benefits if
the new parent has higher brand equity than the acquired company. A case study of an acquisition of a national
construction materials company by a larger international group provides an illustration of the transfer process.