Brand Valuation and
Brand Value:
Is marketing an art or a science? Is it controlled by accountants analyzing financial statements, or, is it driven by creative people searching for big advertising ideas while in the shower?
We believe that building a brand is both and art and a science. Because marketing drives business value, it must be accountable for the results. By the time the accountants see the numbers, it's too late.
AbsoluteBrand can build a brand valuation model for you that links historical results with present changes to map the future performance of your brand.
Your brand is your most important asset. Make sure the time and money you've spent on your brand reflects the way your customers feel about your brand. A brand valuation will show that your brand can be developed over a period of time with the purpose of stimulating higher prices and demand for products.
At AbsoluteBrand we identify drivers of value and use this information to values brands and intangible assets.
We use industry-accepted valuation practice intertwined with sound marketing principles to create a dynamic model that can be ported to the Web for broader use by your company.
Brand Valuation
Methodology:
We can help you understand your brand by creating a financial business model that defines your brand's current and potential value. The process works through your marketing plan with your historical and forecast financials. The steps to our methodology are as follows:
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Identify the brand
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Segment your business to ideation of the brand
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Create market maps
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Test financial forecasts in relation to levers of financial value
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Determine the drivers of value
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Determine royalty rate
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Calculating 'branded business' value and 'brand' value by segment
Principal Assumptions Underlying a Brand
Valuation:
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projected annual revenues
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royalty rates
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marketing, promotion, research, development, quality control and overhead costs
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segmentation
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drivers of value
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taxation
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discount rates
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growth rates after the explicit forecast period
We begin by setting out a brief background of the relevant history of your brand. We apply the relief from royalty method for the brand in its key markets and for its key segments. We analyze your brand's drivers of value. We compare the royalties calculated for the valuation against actual licensing of the brands. We consider sales of comparable trademarks and brands. We use our exclusive database listing of arm's length, publicly disclosed transactions to compare with your brand. We consider information on historic costs and replacement cost.
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