Brand Strength Analysis
We help businesses understand the relationship between brand attributes and key value drivers in the business model. This is achieved by creating a framework for measuring brand equity and connecting it to value driving behaviour in each stakeholder group. Resources can then be allocated and prioritised based on the overall impact on financial value.
- Brand Strength Analysis
- Brand Ratings
- ßrandßeta Analysis®
- Brand Value Added (BVA®)
Brand Finance uses one or more of three widely recognised Approaches to valuing brands, depending on the circumstances of the particular assignment. Compliant with both IVSC and ISO standards we may apply a Market Approach, which determines value by benchmarking against transactions involving similar brands which may have been bought or sold. Or we may apply a Cost Approach, which determines value by considering the cost to recreate a brand of equivalent economic utility. But more commonly we apply the Income Approach, which estimates the value of future income attributable to the brand and expresses this as a Net Present Value. Within the Income Approach the most common method used for finance and tax brand valuations is the Royalty Relief method because it is transparent, based on commercial practice and is more verifiable for audit and legal purposes. However, we also frequently use the price premium, volume premium, margin uplift, cost savings, economic substitution and income split methods when appropriate.
Our understanding of your business, the data available, and our technical expertise ensure that your brand will be robustly valued, using the most appropriate Approaches and Methods, whatever the circumstances.
- Product Brand Valuation
- Corporate Brand Valuation
Branded Business Valuation
Branded business value (BBV) is the value of the entire business operating under a particular set of trademarks and associated intellectual property. Typically determining a BBV is the first step in a brand valuation exercise as calculating a brand value alone can lead to a narrow assessment of the impact that brand has on a business. BBVs give us a greater understanding of the business value as a whole as a starting point for more accurate valuations of the individual intangible assets, including brands.
- Branded Business Valuations
Intangible Asset Valuation
Brand Finance is an international leader in the valuation of intangible assets. A high level of technical understanding and expertise is applied in determining the most appropriate Approaches and Methods to arrive at a reliable valuation, given the unique nature of each intangible asset.
- Customer Lifetime Value
- Patent / R&D / Technology Valuation
- Database Valuation
- Website Valuation
- Copyright Valuation
We work closely with clients, internal and external counsel and courts to provide clear and objective expert reports relating to complex brand valuation and licensing issues. We have frequently advised clients on the issues and assisted with mediation, arbitration and litigation. Often the most satisfactory conclusion to a dispute is to reach a compromise in mediation or pre-court settlement. We assist all parties to understand the data, assumptions, technical valuation issues and risks under each of several scenarios. We help to protect the commercial value of brands through a range of licensing and trademark disputes that have been settled both in and out of court.
- Loss or Damage Assessment
- Expert Witness
Licensing and Franchising
We help maximise earnings and provide greater brand presence and knowledge by identifying the best opportunities for licensing and franchising, both internally and externally. We also provide advice on best practice in licensing agreements.
- Licensing / Franchising Strategy
- Licensing / Franchising Negotiation
- Royalty Rate Analysis
Market and Competitor Analysis
We conduct a benchmarking study of the strength, risk and future potential of a clients brand relative to its competitor set. This helps understanding the strengths and weaknesses of the client brand compared with key competitor brands.
- Market Sizing
- Demand Forecasting
- Competitor Benchmarking
Mergers and Acquisitions
Many acquisitions do not add value to the acquirer. Many divestments or closures turn out to have been a mistake. Before taking action it is necessary to conduct a thorough brand due diligence to ensure that targets are fairly priced and will be sustainable. It is equally important to ensure that underperforming brands are not susceptible to a turn round if a few robust brand management actions are taken. If a sale is to proceed has the subject brand been preened for sale and presented in the most flattering light?
Brand Finance specialises in all forms of brand due diligence for mergers and acquisitions. We have specialist teams of IP lawyers, licensing specialists, market researchers and business analysts. We work to investor timetables and can produce robust results fast.
- Branded Business Sale or Purchase
- Brand Due Diligence
- Information Memoranda
- Bid Defence
The growing importance of intangible assets has significant tax planning implications. Brand Finance works for both fiscal authorities and brand owners on transfer pricing and capital gains tax issues. The Brand Finance team is expert at understanding and explaining the tax benefits and the implications of differing internal and external licensing strategies. We have experience in determining appropriate arms-length royalty payments between subsidiaries, and have assisted several companies in setting up bespoke IP holding companies, which own, manage and licence out brands and other IP to the rest of their organisations.
- Tax Valuation
- Transfer and Advance Pricing
- Brand / IP Holding Companies
Trademark Registration Strategy
It is vital that the brand valuation includes an assessment of the legal protection afforded to the brand in each geographical jurisdiction and product or service registration category. These legal rights vary between legal systems and need to be carefully considered when forming the brand valuation opinion. For example, the legal rights protecting brands exist at a national (UK), supra-national (EU) and global (WIPO) level and have different characteristics.
- Trademark Registration Strategy