Brand valuation and intangible asset valuation can be approached in a number of possible ways. Intangible Business draws on all available approaches to brand valuation so that decisions can be made on a more informed basis. Our general brand valuation approach is to look at intangible asset valuations on a number of different bases. There are generally three different approaches to brand valuation: the income approach; the market approach; and the cost approach. Other brand valuation methodologies are also used on a needs specific basis.
Generally we find that an income basis (relief from royalty) drives the brand valuation with the other approaches to brand valuation used in support or as sense checks. We therefore normally carry out in depth analysis into:
- Consumer/customer perception compared with competitors
- Market mapping and analysis, size share and growth
- Royalty analysis, supply chain price points and profitability analysis
- Effective financial analysis
- Meaningful benchmarking
This resulting useful information can be used in a number of ways including on-going brand management and development, a benchmark of return on investment (ROI); compliance with US GAAP, IAS and IFRS and negotiating with licensees or joint venture partners. Information from a brand valuation is also useful in brand transactions, dispute resolution and for investor relations.