There are three primary brand valuation methodologies. The income approach is usually the main brand valuation methodology: this is the net present value of forecast earnings that are directly attributable to a brand over its useful life. A royalty rate is used to determine the proportion of branded earnings, thereby calculating how much the business would have to pay to use its brand if it didn't own it.
Brand values are required for a number of reasons. For management, understanding where brand value is created can help management increase the value, it can help determine applicable royalty rates for licensing deals, it can influence merger and acquisition strategy and monitor return on investment. Brand values are often disputed so knowing a brand
Two main strands of information are required. The first is detailed financial analysis into the sales and profitability of the business and the second is a commercial due diligence process and brand strength testing in the eyes of the consumers. Both these elements are generally either already held by the business or readily available - if not, Intangible Business is skilled in sourcing it through market research. To find out more about what you need to value brands, call us on +1 312-794-7794 or send us an email.
Brands are frequently the most valuable asset of a business. Other intangible assets also have significant value, such as customer relationships, copyrights, patents, shares or contracts. Intangible Business specializes in valuing all intangible assets, not just brands, for a variety of different purposes. View all our brand valuation services to find out more, call us on +1 312-794-7794 or send us an email.
Years of experience combined with financial and marketing qualifications. Valuing brands requires an appreciation of the commercial environment and the benefits a brand creates for businesses and consumers. Years of experience have given Intangible Business exposure to a wide variety of industries and with a team of chartered accountants, marketers and a familiarity with the legal environment, Intangible Business is will qualified to determine brand value. Read about us to find out more, or call us on +1 312-794-7794 or send us an email.
Yes, SFAS 141 and SFAS 142 both govern how to value intangible assets. These rules govern the valuing of intangible assets for listed US companies on acquired brands and other intangible assets. The same principles as required under SFAS 141 and SFAS 142 are adhered to when valuing brands for other purposes. Read about our financial brand valuation services to find out more or call us on +1 312-794-7794 or send us an email.