Brand Valuation
The value of a brand represents the economic value of the brand and the brand equity, which is a set of perceptions, knowledge and behavior on the part of the customers. Brand loyalty, brand awareness and reputation, perceived brand quality, market share and other factors often determine the value of a brand. Therefore, brand valuation may be defined as the process of determining the monetary value of a brand based on data analysis and assumptions over a period.
The brand valuation report contributes:
- to determine the price to be received by a company that will grant the right to use a trademark by means of a licensing/assignment agreement.
- to determine the value of a brand that is fair to both parties in merger and acquisition transactions.
- brand management, brand architecture, brand portfolio management, marketing strategy determination and marketing budget dissipation.
Assessing the tangible value of the brand helps companies to be more precise in strategic decisions such as financial analysis, transfer transactions and mergers and acquisitions.
In addition, the brand valuation report may provide a benchmark value to use when negotiating licensing and association agreements. This will help to reach an agreement in which the interests of both the trademark owner and the potential licensee or partner are protected.
