There are three main types of brand valuation methods:
In real estate appraisal, the cost approach is one of three basic valuation methods. The others are market, or sale comparison, and income. The fundamental premise of the cost approach is that a potential user of real estate won't, or shouldn't, pay more for a property than it would cost to build an equivalent. The cost of construction minus depreciation, plus land, therefore is a limit, or at least a metric, of market value.
In this approach a comparison with the market is done. For example if a person wish to buy a property in place A, it is quite likely that the price of neighborhood would be checked before arriving at conclusion on the existing property, leading to an approach based on the market. This valuation method relies on the estimation of value based on similar market transactions (e.g. similar license agreements) of comparable brand rights Given that often the asset under valuation is unique, the comparison is performed in terms of utility, technological specificity and property, having also in consideration the perception of the asset by the market. Data on comparable or similar transactions may be accessed in the following sources:
This approach measures the value by reference to the present value of the economic benefits received over the rest of the useful life of the brand. There are six recognised methods of the income approach.
The financial evaluation of the brand’s tactical activities and their contribution to business and brands strength and value results are critical components in the process of auditing how effective the pre-defined business strategies are for the creation and construction of value.View Graph
Business & Brand Value Analysis (BVA) is a quantitative tool which allows for integrated auditing and management of value in terms of the costs-benefits associated with all strategic and operational dimensions of organizations.
Workshops will be held whose focus will be the qualitative and quantitative assessment of:
1. The relevant stakeholders;
2. The studies and information which enable us to sustain the strategic platforms and dimensions of the business (and of its operational units)
3. The contribution and optimization of each operational unit for the success of the overall business
4. The contribution and optimization of each department for the success of each operational unit
5. The alignment, contribution and optimization of each department of each operational unit for the overall success of the business
6. The assessment of competences (and their alignment and optimization) for the overall business and for each operational unit
7. The identification of opportunities for creating value and for eliminating operational costs in physical, intellectual and human resources