Healthcare Mergers Rebranding Costs

Rebranding Costs Calculation

• The best way to assess the degree of the mandated change after a merger is to consider the size of the synergy target.  
• The more changes are needed, the bigger the amount of the budget.

Healthcare Merger Example

• When HealthSouth and Encompass Home Health and Hospice merged, the company decided to adopt a single name.
• However, their target market were still not aware that these two entities were already under one company.
• Given this, the company decided to do a rebranding initiative and launch the new Encompass Health Corporation as its new name.  
• The estimated cost of this rebranding is between $25 million to $30 million.  
• It will involve the transformation of branded assets, formulating a strategy to involve stakeholders, and deploying a focused marketing plan to raise more awareness of the Encompass Health brand.

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