Brand Finance uses one or more of three widely recognized Approaches to valuing brands, depending on the circumstances of the particular assignment. Compliant with both IVSC and ISO standards we may apply a Market Approach, which determines value by benchmarking against transactions involving similar brands which may have been bought or sold.
Otherwise we may apply a Cost Approach, which determines value by considering the cost to recreate a brand of equivalent economic utility. But more commonly we apply the Income Approach, which estimates the value of future income attributable to the brand and expresses this as a Net Present Value.
Our understanding of your business, the data available, and our technical expertise ensure that your brand will be robustly valued, using the most appropriate Approaches and Methods, whatever the circumstances.
Supportable valuation and accounting for the acquired brands is an essential step in acquisition accounting.
Note - Our valuation methodology for brands may vary, but all require significant industry specific judgment and expertise to ensure supportable measurement and to avoid audit surprises and the risk of restatement.