Methodology created to determine a balance sheet value for a company’s brand. A detailed analysis is made of the client’s brands, covering history, positioning, support received, market share, competition, past performance, future plans, line extensions, methods of distribution, risks to the brand and so on.
Each brand profile is supported by marketing and research detail, samples of packaging and advertisements. All this is reviewed with clients to establish a clear image of the brand’s personality and prospects. Working with the client’s accountants, financial data is prepared on each brand.
Each brand is scored for attributes which are weighted. The brand score determines the earnings multiple for each brand. These multiples are based on factors such as yield of long term gilts, bid premiums and the weighted cost of capital.
Thus, a brand-by-brand evaluation is calculated, taking into account each brand’s trade mark, registered name and other protection, plus any relevant licences or agreements. A valuation assignment takes from two to six weeks.