What is Brand valuation?
Brand valuation provides a common language for brand performance around which a company can be galvanized and organized. The value of a brand often is defined as the amount of money another party is prepared to pay for it. Sometimes, this is readily ascertainable after a company purchases a brand and the associated goodwill without any other assets; in many situations, however, determining a value for a brand can be significantly more complicated. Another readily identified value of a brand, or brands, is the difference between the amount paid to buy a company and the value of the fixed assets of that company. That difference represents the goodwill being purchased, and this goodwill usually is reflected in the company’s brands. The true value of a brand is ascertainable only when a willing purchaser and a willing seller reach agreement in the marketplace. Historically, most of a company’s value was in tangible assets such as property, stock, machinery or land. This has now changed and the majority of most company’s value is in intangible assets, such as their brand name or names. Brand value is the benefits generated by the brand minus any costs of acquiring and owning the brand, so brand value equals tangible brand attributes plus brand equity minus price of the attributes.

Why Brand valuation is necessary?
There are a number of different reasons for valuing brands.

These range from highly technical to commercially-focused reasons:

Technical:
* Balance sheet reporting and impairment reviews
* Tax valuations and transfer pricing compliance
* Litigation and dispute resolution

Commercial:
* M&A and financing
* Licensing and JVs
* Establishment of brand management company
* Brand strategy formulation
* Brand architecture review
* Portfolio management
* Brand performance tracking (scorecards)
* Investor relation