Product Market Dynamics and Mergers and Acquisitions: Insights from the USPTO Trademark Data

Abstract

Using a novel trademark-merger data set over the period 1983-2016, we shed light on the sources of synergies in mergers and acquisitions (M&As). We show that post-merger, compared to their non-acquiring peers, acquirers reduce new product offerings as measured by fewer new trademark registrations, especially in trademark classes common to both acquirers and targets. Moreover, acquirers discontinue more acquirers’ and targets’ trademarks in common classes and classes unique to themselves, but discontinue fewer trademarks in classes unique to target firms. We conclude that M&As provide opportunities for acquirers to gain access to different products and to reduce overlapping product offerings.