The deal seems to have been structured so that the investors' options would remain open: one option being to hold the investment briefly and then flip it, either as a whole or by spinning off the acquired components. Another option was to take the company public. The stated option was to operate the companies so that their synergies could be tapped to reduce the costs of production and distribution sufficiently to offset the ongoing financing expenses associated with the formation of Favorite Brands. While Texas Pacific may have ultimately hoped to take the company public, it became apparent that Favorite Brands' rollup strategy was fundamentally flawed. The company paid too much for its assets and took on too much debt. The acquisitions did not mesh well together, having different operations, different products, and different customers-thus leading to severe difficulties in integrating the operations and achieving any benefits from the company's size. Systems and reporting were quickly integrated, but getting the various Operations, Sales, Marketing and Distribution components working together presented an ongoing problem. When key executives from acquired companies left, Favorite Brands lost an incalculable amount of trade relations and knowledge of the candy business, which had a debilitating effect on business. Some orders were now delivered late or only partially filled, providing an opening for competitors to seize all-important shelf space. Another common experience Favorite Brands shared with the travails which Brach's had endured was the loss of a well-known brand name; Favorite Brands was to lose the 'Kraft' name on its packaging effective October 1997. In addition, Favorite Brands' products were facing ever-increasing competition from competitors such as Brach's, including in the heretofore high-margin Fruit Snack and Gummi product lines.