Tailor made brand valuation with brandVAL
brandVAL is a down-to-earth procedure which applies generally accepted methods. The degree of detail of the calculations can be customized to the requirements of the client.
Project steps
brandVALTM works as follows:
- Identification of the earnings generated by intangible assets on the base of the figures provided by the controlling (EBIT deducted by WACC)
- Measurement of the brand power by qualitative indicators
- Measurement of the power of other intangible elements like patents, rights etc.
- Measurement ot the earings generated by the brand
- Market capitalization of the earings based on a down-to-earth capitalization rate
Project duration
3 weeks to 5 months, depending on available financial data and recent demoscopic reseach on brand awareness
Investment
With brandVALTM it is possible to determine the degree of detail of the calculation as to its intended use (acquisition, licencing, tax etc.).
If there is detailed financial data and market reseach available a brand valuation can be done within a range of about CHF 20-30'000.00.
If there has to be done market reseach - especially on an international level - a range of CHF 70-100'000.00 is likely.
Please ask for a customized tender here!
Since 2001 US GAAP requires that each acquired brand has to be checked periodically by the impairment only approach (IOA). The same holds for listed companies since 2005 for the European IFRS accounting rules.
The best approach to valuate brands consists in combining a financial analysis with an analysis of the brands awareness.
