Getting their teeth in

Most people in the marketing services industry see venture capitalists as the nemesis of brands. They are viewed as financial whizz kids looking only for a quick buck, with little regard for the long-term future of the brands they buy up and sell on a few years later. According to one source, from t...

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Bibliographic Details
Published in:	Marketing Week 2004-10, p.26
Format:	Article
Language:	eng
Subjects:	Acquisitions & mergers Advertising Brands Cost control Equity Executives Financial services Food processing industry Manycompanies Marketing Marketing management Private equity Product development Venture capital Venture capital companies
Online Access:	Get full text
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Summary:	Most people in the marketing services industry see venture capitalists as the nemesis of brands. They are viewed as financial whizz kids looking only for a quick buck, with little regard for the long-term future of the brands they buy up and sell on a few years later. According to one source, from the moment the venture capitalists take over a company, it is effectively up for sale. This means it is hard to attract top marketing people, so the brands suffer even more. As well-paid executives, marketing directors are prime targets for cuts. Some question whether brands that have been taken over by venture capitalists retain much of their value when they come to be sold off. Venture capitalists will continue to target UK brands as long as they can identify enough costs to trim. Marketers will have to ensure that they are perceived as providing the muscle, rather than the fat.
ISSN:	0141-9285