Brand valuation

Brand valuation is a method for understanding the impact and real value of a brand’s intangible assets. Conducting a valuation is key for companies and investors, as it will allow for better strategic decision-making.

What is brand valuation?

Brand valuation is a method for understanding the impact and real value of a brand’s intangible assets. Performing a valuation is key for companies and investors as it will allow for better strategic decision-making. Brand valuation will help you understand the perception of your brand and its capital value. This is very useful information for valuing your company’s intangible assets. This exercise will help you determine what portion of the company’s sales, expenses, profits, and investments are accounted for by the brand.

Importance of brand valuation

Brand valuation is a fundamental step in understanding the true value of your business’s intangible assets. There are several reasons why it may be interesting to understand this value:

Accounting requirements
  • In the case of business combinations such as mergers and acquisitions, the purchase price must be allocated among tangible and intangible assets, and goodwill.
  • International Accounting Standard 36 includes impairment of goodwill among other indefinite-lived assets.
Tax and legal requirements
  • For tax planning and asset sales between companies.
  • In litigation, it will be useful for assessing damages, infringement of rights, and antitrust practices.
  • For franchising, royalties, and licensing agreements.
Financial requirements
  • In financing cases, loans can be made using the brand as collateral.
  • In cases of insolvency, liquidation, and divestment processes.
  • This is a method of transparency for shareholders and stakeholders.
Strategic requirements
  • To identify and evaluate value drivers.
  • To allocate resources and plan and control the strategic direction.
  • To support sales and purchase transactions.

How to perform a brand valuation

There are several methods for performing a brand valuation, including:

Royalty Savings

Through royalty savings, brand value is calculated as the present value of the royalty stream that the company, if it were not the owner of the brand and licensed it to a third party, would have to pay for its use.

Analysis of demand drivers

“Demand driver analysis” considers the effects of brand strength on demand, with the goal of defining the brand’s influence on a prospective brand purchasing process.

Complementary services to theBrand valuation

At BGA IP we offer complementary solutions toBrand valuationso you don't have to worry about anything:

Comprehensive audit of your case portfolio

Maintenance, control and surveillance pack

Legal assistance

Why choose BGA IP for brand valuation?

At BGA IP, we advise you on trademark valuation. Our service is characterized by its immediate response and efficiency in all legal processes.

BGA IP is an official agent with extensive professional experience. We will act on your behalf before the corresponding national and international offices so that you can focus on your project and its growth without third-party interference.

Before patent registration, we will conduct a preliminary study (free of charge) to help you assess the viability of your future patent registration. Furthermore, after registration, we are responsible for monitoring and ensuring its security.

At BGA IP, we are absolutely traditional in our treatment and advice to our clients and collaborators. However, we are innovative in patent registration in Barcelona. We believe that the trust placed in us by our clients and collaborators must have an immediate professional return, without any undue delay. We answer all inquiries in less than 72 hours and offer solutions to our clients and collaborators, without any obligation or cost.

Brand and patent valuation

BGA IP registers patents in Barcelona and Madrid, but we are present through partners in Alicante, Barcelona, ​​Seville, Valencia, Vigo, Vitoria, and Zaragoza, in addition to acting as the official representative in Spain for partners in Bogotá, Medellín, San Francisco, Brussels, and Guangzhou.