Trademark, brand and economic copyright valuation
Brands and trademarks are an important part of the identity strategy of products, services and the enterprise itself.
An image of a company created around the brand and the trademark influences the acquisition and strengthening of a competitive advantage. Therefore, the brand and the trademark are recognized as key intangible assets that contribute to the company’s value.
Determining the fair value of the brand and the trademark is important from an enterprise’s point of view in strategic, marketing and financial terms.
The fair value of the brand and the trademark can be used, inter alia, for the following purposes:
- for the needs of the company and its owners,
- for licensing the use of the brand and the trademark, e.g. within a franchise network,
- for sales,
- as a collateral for a credit or a loan,
- for a contribution in kind to another entity.
An enterprise may have both registered or unregistered trademarks that may be subject to valuation. Therefore, at the beginning of our cooperation with the Client, we determine valuation scope and objective.
As to brand and trademark valuation, we rely on the financial data received from the company and on the information collected by specialised databases.
The valuation method of the brand and the trademark for the purpose of determining fair value which is the most commonly practiced, recognized and accepted by chartered auditors is the relief from royalty method. Its advantage lies in the linking of the brand and trademark values with market conditions and the impact of the environment. This method is also commonly used in compensation and audit proceedings.
The process of brand and trademark valuation consists of the following stages:
- identifying the purpose and object of valuation,
- gathering data necessary for valuation,
- analysis of the data received and of the factors influencing the brand and the trademark value,
- drawing up the valuation model,
- presentation of results and submission of the valuation report.