Brand Finance

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Brand Valuation

What we do.

A Brand Valuation, also known as a trademark valuation, provides you with the value of the legal rights to the income stream derived from your trademark assets and your associated IP. We use a number of methodologies depending on your requested purpose, which can be Fair Value Exercises (IFRS 3 / FAS 141) on acquisition, Impairment Reviews, Chargeable Gains Transfers, Insolvency & Dispute or simply management information.

Brand Value is the capital value of economic benefits brought to an entity through use of a brand. This is most commonly done as a net present value of the estimated additional future cash flows generated by the Brand for the organisation.

The accepted standard on how to calculate brand value is ISO 10668:Brand Valuation, in which 3 broad approaches are accepted. The most commonly used of those is the Income approach, which has 6 accepted methodologies that use either future revenue or profit estimates to conduct the brand valuation.

For more information on Brand Valuation, have a read of our whitepaper on Value-Based Brand Management - Conducting Brand Valuations

For our rankings, like the Global 500, Brand Finance uses the Royalty Relief (also known as Relief from Royalty). For more information check out the methodology page here.

Who we work for.

Club Med - Brand Valuation

Club Med, a French public limited company specialising in the sale of all-in holidays, wanted to know the value of its core brand for the purposes of internal understanding and communication with investment analysts. Brand Finance was commissioned to conduct a worldwide valuation of the Club Med trademark segmented by local markets. For the purposes of this indicative brand evaluation, Brand Finance chose the royalty relief approach as a primary valuation methodology, using discounted cash flow techniques. The final report helped Club Med management identify, demonstrate and communicate the value of the brand and its influence on the performance to explain the strength of the branded business to the investment community.

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