An important parameter to gauge the reasons behind success (failure) of a firm in the form of sustainable growth rate provides useful insights to managers and investors. This research analyzes the variations in calculations and suitability of method of calculating this growth rate using two different formulas. It also intends to examine the extent to which these variations in sustainable growth rate are explained by some of its important determinants. Using panel data regression by decomposing return on equity into net profit margin, asset turnover and financial leverage, results suggest that four key ratios are robust in capturing the variations in sustainable growth rate even after introducing industry-specific factors like industrial growth and inflation in the regression equations. Sustainable growth rate calculated only on the basis of percentage change in book value of equity provides an aggregate view depicting that any changes in sustainable growth rate across industries are random. Further analysis provides evidence that net profit margin drives the sustainable growth of firms in the Indian manufacturing sector.

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a Consultant in the London of®ce of Prophet (www.prophet.com), a management consultancy that creates and implements integrated business, brand and marketing strategies for clients.I n today's knowledge-based economy, mergers and acquisitions are routinely conducted to gain access to the intangible assets of a business. However, brands are an intangible asset that require special acquisition practices ± for targeting, due diligence, valuation, portfolio strategy, and the post-merger management process.More than a name or tagline, a brand is a set of expectations and associations with a company or product evoked in the minds of customers. EquiTrend's study of the impact of a company's brand equity over time on its return on investment (ROI) found that ®rms experiencing the largest gains in brand equity saw their ROI average 30 percent. Firms with the largest declines in brand equity saw their ROI average a negative 10 percent.Such ®ndings give credence to the argument for regarding brand as a strategic asset that should be managed accordingly. This is an increasingly important issue for businesses that favor or have favored acquisition-based growth strategies. To ensure they realize the optimal strategic value from the brands they are buying and selling, just calculating brand value does not suf®ce. They need a process for integrating brand and corporate ®nance M&A practices.Firms with acquisition-based growth strategies also need a process for determining how to brand the acquired company and how to manage the migration of the brand to the new company. The imperative in this phase is to ensure that customers remain happy and loyal to the brand. This is achieved through the strategic management of key customer touchpoints, which are all the contacts where the brand and the customer interact during the purchase and usage cycles, whether through marketing communications or in-person interactions. The goal is to create a consistently satisfactory customer experience across all touchpoints.It is our conclusion that most businesses engaged in M&A have not devoted the attention to brand considerations that is commensurate with their importance in all phases of the deal process. This attention gap needs to be addressed to ensure that mergers and acquisitions deliver the value expected. The following guide equips acquiring companies with a framework`A key aspect of marketing due diligence is to study the transaction through the customers' eyes, a perspective that is critical to market-facing businesses.

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