Measuring the financial value of brands and trademarks
Brands are among the most valuable assets of companies and often account for more than 50% of a company’s value. Since self-created brands cannot be included in the balance sheet, brand value has the character of a hidden reserve and is often not explicitly known. However, the value of a brand is of crucial importance for valuation or financing issues, transactions, liquidations, or insolvencies. And last but not least, it is an important target figure for brand controlling. It shows the extent to which investments in the brand contribute to the value of the company.
GOOD TO KNOW
Brand valuation is carried out in collaboration with ANXO Management and is based on the proven INNOFACT brand funnel analyses. Brand success is not only measurable in terms of performance, but also expressed in euros and cents. Brand management can thus demonstrate its value contribution to the company in a valid and data-supported manner and justify strategic investments.
Valid measurement of brand value according to DIN ISO
Based on an objective and standardized process model, we have already produced more than 1,000 evaluations for corporate and product brands from various B2B and consumer goods industries.
Brand value reports from ANXO Management are certified according to DIN-ISO 10688 and IDW S5. They also follow the even more stringent principles of proper brand valuation established by the BDU e.V. (Association of German Brand Consultants).
How it works
The brand valuation uses data from INNOFACT brand funnel analyses. These form the basis for the first step of the analysis, the calculation of brand strength.
As the starting point for brand value measurement, this value shows how strongly the brand is anchored in the minds of potential customers. All further steps in determining financial value are carried out in accordance with DIN ISO standardc10668 and IDW S5 of the Institute of Public Auditors.
- Measurement of brand strength using valid data from the brand funnel
- Isolation of brand performance and thus the pro-rata value contribution of the brand to the company’s success
- Determination of the brand’s earnings potential in terms of the annual cash flows generated by the brand for the company
- Determination of the brand’s lifespan based on an intensive analysis of its business model
- Determination of the brand value based on the recognized capital value method
These questions will be answered:
- What is the current monetary brand value?
- What is the brand’s potential value for the future?
- What value does the brand contribute to the company?
- How much has the brand value increased?
- What are the drivers of brand value?
This is what INNOFACT delivers:
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Court-approved brand value assessment in accordance with DIN ISO and IDW S5
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Comprehensive value analysis
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In-depth examination of the business model
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Interdisciplinary team of experts consisting of market researchers and DIN ISO-certified management consultants from ANXO Management Consulting
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More than 30 years of experience and more than 1,000 brands evaluated