Assessing the value of brands

Abstract

It has long been recognized that intangible assets, especially brands, can be extremely valuable and that often such assets are of far more significance than, for example, tangible assets. Hitherto brands have not normally been separately valued and, until recently, did not appear in a company's balance sheet. Increased merger and acquisitions activity in the publishing and branded goods sectors involving the payment of large premiums over net assets has now led to a fundamental reappraisal of the value of brands. The specific valuation of brands reduces post-acquisition goodwill write-offs. More importantly, brand valuation can assist in mergers and acquisitions, fund raising, licensing and in brand management.