With the emergence of the global economy and increasing competition, brands and brand
management have become a core element of corporate policy.
Brand Valuation has become an essential strategic element in the executive management of the
modern enterprise. Well-managed brands are a significant aspect of corporate worth, often valued at
significant percentage of the enterprise value (up-to 80% in totally brand-driven companies), and can
be the most valuable asset an organization possesses.
Today brand valuation plays an essential role in many aspects of business management such as:
With the emergence of the global economy and increasing competition, brands and brand management have become a core element of corporate policy.
Brand Valuation has become an essential strategic element in the executive management of the modern enterprise. Well-managed brands are a significant aspect of corporate worth, often valued at significant percentage of the enterprise value (up-to 80% in totally brand-driven companies), and can be the most valuable asset an organization possesses.
|WHY BRAND VALUATION|
Business Strategy
Understand where and how the brand creates value by market, by customer segment, by product and by channel
Develop strategies for brand portfolios for investment, divestment and rationalization(Budget allocation)
Marketing
Establish strategies to optimize brand investment & return
Size the potential brand value creation from brand extension into new markets, new products or new channels
Understand brand equity and how to track this over time
Financial Leverage
Size appropriate royalty rates for brand licensing to third parties
Size internal royalty rates for the use of the brand within groups of companies
Business and Financial Communication
Conduct brand valuations for balance sheet purposes by reporting unit
Communicate the value added by the brand on an ongoing basis to the investment community
Mergers, Acquisitions and Joint Ventures
Establish an appropriate price on acquisition or disposal
Establish the financial contribution of the brand in joint ventures and alliances
Separate the value of the brand from goodwill and the rest of the business
• E stablish strategies to optimize brand
investment & return.
• Size the potential brand value creation from
brand extension into new markets, new
products or new channels.
• U nderstand brand equity and how to track this
over time.
Financial Leverage
• Size appropriate royalty rates for brand licensing to third parties.
• Size internal royalty rates for the use of the brand within groups of companies.
Business and Financial Communication
• Conduct brand valuations for balance sheet purposes by reporting unit.
• Communicate the value added by the brand on an ongoing basis to the investment community.
Mergers, Acquisitions and Joint Ventures
• E stablish an appropriate price on acquisition or disposal.
• E stablish the financial contribution of the brand in joint ventures and alliances.
• Separate the value of the brand from goodwill and the rest of the business.
|BVM - BRAND VALUE MANAGEMENT|
ICM Advisors has significant capabilities in Brand Value Management in terms of industry, marketing and financial expertise of its advisors and research analysts and in terms of industry-accepted practices integrated with innovative proprietary valuation methodologies and tools.
We help clients to understand the brand by creating a business, marketing and financial model that defines the brand’s current and potential value.
Robust brand valuation methodologies and practices are now widely recognised by the business and financial community.
We have innovated the brand valuation practice by introducing a formal assessment and valuation of the branded business, of the Intangible Asset Portfolio and of the Brand Promise Delivery (customer/channel experience).