ANALYSIS: Is the Price Right for Brand Acquisition? - Brand Due Diligence Is in High Demand as Non-Core Brands Are Sold
In the 1980s Sir Paul Judge, then strategy director at Cadbury, used City money to buy out non-core brands from Cadbury, to form Premier Brands. He went on to make himself and his investors a fortune.
Five years ago, John Murphy, the founder of Interbrand, led a small consortium to buy Plymouth Gin from Allied Domecq. It turned the brand round and also made a fortune when they sold the brand on.
There are also cases where brands have been bought too dearly. The acquisition of Snapple by Quaker resulted in a pounds 644m write off.
Correctly pricing brands has become a big issue as conglomerates review their portfolios and spin off non-core brands.
Questia, a part of Gale, Cengage Learning. www.questia.com
Publication information: Article title: ANALYSIS: Is the Price Right for Brand Acquisition? - Brand Due Diligence Is in High Demand as Non-Core Brands Are Sold. Contributors: Not available. Magazine title: Marketing. Publication date: October 31, 2002. Page number: 15. © 2003 Haymarket Business Publications Ltd. COPYRIGHT 2002 Gale Group.
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