When private equity firms purchase healthcare companies, it’s easy for those individual entities to lose their identities. This could be the first domino that leads to a fall in value. While the focus of a PE firm is always financial performance and operational efficiency, what made these companies attractive enough to acquire in the first place shouldn’t be painted over with a broad brush.
The new employees from the acquired companies should feel seen and welcomed. One of the most powerful levers to pull to create that sustained long-term value is properly naming the portfolio. A thoughtful naming strategy can unify cultures, signal strength to the wider healthcare market and simplify complex narratives. Treating naming as an afterthought is a recipe for second thoughts, and the ingredients include confusion, internal misalignment and diluted brand equity.
There are three main approaches private equity firms can take when deciding what to do with legacy healthcare names: unified brand integration, an umbrella brand, or elevating an existing name.
Unify under a new name
When the goal is to build an industry leader, consolidating legacy names under one unified brand creates the strongest foundation. This concentrates equity into one brand that reflects the combined capabilities of all parties. Healthcare groups aiming to deliver a holistic suite of products or solutions are prime for this strategy.
We led the post-acquisition rebrand for Lumelight, an integrated benefits solution provider that helps organizations manage increasingly complex regulatory requirements. They had multiple businesses, and our naming strategy satisfied the investment thesis because it needed a single entity go-to-market strategy. It instantly positioned the new company as a one-stop shop for all things employee benefit administration compliance.
Bringing all teams together under a shared identity and purpose creates clarity and momentum. It also simplifies messaging for customers and investors alike, which builds recognition faster by reducing market confusion.
The tricky part is the sunset plan for legacy names. Steps need to be made clear to everyone involved to ensure employees see themselves in, and feel part of, the new brand. Success depends on integrating cultures and operations.
Keep the name, share the umbrella
Creating an umbrella brand allows each acquired healthcare company to retain its own name while still signaling shared ownership. This goes a long way in retaining the equity of established brands that already hold trust and credibility.
It allows for a more “business as usual” environment as each company is free to maintain its traditional focus while benefiting from a newfound association with a larger, well-capitalized entity. PE firms also retain the flexibility to divest or spin off companies without disrupting the broader brand ecosystem. One brand’s success can also create a halo effect in which the other brands benefit.
In this situation, the positioning and role of the umbrella brand should be clearly defined. Naming conventions must be consistent and have the visual coherence to maintain credibility across the portfolio. The sweet spot is when the umbrella brand can articulate a unifying idea without overshadowing the individual sub-brands.
Elevate an existing name
There’s never a reason to improve on perfection. In some cases, an acquired company may have the ideal name with which to move forward. It may carry recognition, trademark strength or the right emotional tone for what’s next for the entire operation. It may also elicit trust, which is paramount and extremely powerful when it comes to the healthcare world.
Existing awareness and goodwill gives the new entity a head start, saving time and resources on trademark registration and brand building. It also provides continuity and familiarity, especially when the old name fits the future business strategy. This approach signals evolution, not overhaul, and goes a long way to maintaining both internal and external confidence in the company.
Potential downsides can exist if employees feel their legacy brand will become tarnished or diminished in some way. It’s key to reposition and broaden what the name will represent going forward beyond its original business or audience. Make clear the rationale and celebrate the choice.
Communicate with everyone affected
Like so many things in life, communication in these circumstances is a key determinant of success. Brand names carry such weight, and transitions create uncertainty. It’s imperative for employees and consumers to understand and believe in the story and motivation behind the new name.
When CEOs, founders and leaders in general participate directly in the naming and change effort, it signals that the work matters. Their voice shapes how the brand is understood and their presence helps employees internalize the transition in a way that feels authentic and purposeful.
Internal alignment is the key to avoiding cracks in the foundation. A name must be contextualized and explained before it can be embraced, and change management should be built into the brand process from day one. The launch is always exciting, but the money is in maintaining orbit.
Naming decisions are not symbolic, especially in an industry as under the microscope as healthcare. These strategies shape how employees see their future, how investors perceive strength and how the market understands what’s next. A clear strategy helps private equity firms move from managing a collection of assets to leading a unified healthcare brand.
Jaclyn Hesse
Jaclyn Hesse is co-founder of Taillight, a full-service branding agency that works with clients from strategy through activation. She has led global marketing, communications and business development departments in the professional services space, as well as rebrands, strategy, architecture and brand identity projects, on behalf of organizations across numerous industries.
