The practice of placing brand value on company balance sheets came into vogue in the late 1980s, although there has been much debate over it since then, particularly the lack of consistency in approaches. The past 20 years have seen several significant developments to address this and to push brand valuation into mainstream practice.
Brian M Daniel, vice president of Charles River Associates, provides a useful overview of these, as well as the two ISO standards governing the space.
Richard Haigh, managing director of Brand Finance, reflects on key brand valuation trends that have emerged over the past decade-and-a-half – focusing on the companies and sectors that have led the way.
The WTR Brand Elite project follows the stock performance of brand-focused companies, shedding light on possible links between brand innovation and investment, and financial success.
Christof Binder, managing partner of Trademark Comparables AG, Markables, runs through the 50 most expensive brands and brand portfolios acquired over the past two decades, and the trends that they reveal.
In many respects, trademark professionals deal in the intangible. You may receive a physical certificate when you register a mark but the asset on which brands are built is a classic intangible, which the IFRS defines as “an identifiable non-monetary asset without physical substance”.
Even a global pandemic could not stop the upwards rise of intangible assets, reveals Annie Brown, author of Brand Finance’s GlobalIntangible Finance Tracker report.
Financial reporting standards will always be flawed while there is a dichotomy between recognising the value of acquired intangibles and the fact that no disclosures about internally generated intangibles is required, argues Brand Finance associate Annie Brown.
In July 2021, Inngot completed a £1 million funding round to support the build and launch of a platform of scalable, data-driven methods, which have been designed to assess the suitability of intellectual property as loan collateral. WTR spoke to CEO Martin Brassell to uncover how the firm intends to shift mindsets on IP value and empower more companies to capitalise on their intellectual assets.
The decision in a 2020 dispute between Coca Cola and the US Inland Revenue Service sent shockwaves around the world. Jonathan G Polak, Todd C Lady and Joseph Balthazor Jr of Taft Stettinius & Hollister analyse the case and its strong message on the allocation of branding profits among international subsidiaries.
The ability to manage a brand balance sheet is key to optimising business operations and strategic decision making. For trademark professionals, inputting into this critical task has a number of paybacks – from helping the team to make even stronger commercial choices to raising its profile and interaction levels with other commercial stakeholders.
“Trademark practitioners play a critical role in brand valuation and brand evaluation exercises and should be stronger strategic partners with their finance and marketing colleagues.” This was the key conclusion of the Brand Value Special Task Force Report, published by INTA in April 2020.
In a KPI-driven environment, ROI takes centre stage. But measuring this can be a challenge – particularly when it comes to brand protection. It is up to the trademark team to tailor its approach depending on company culture, industry, infringement levels and crossfunctional standing.
Earlier this year, Ugreson Maistry, former trademark and IP counsel at the Forest Stewardship Council, spoke to WTR about why teaming up with industry players is vital to raising the profile of sustainability brands.
Brand value is a key driver of M&A, reflecting the growing importance of intangible assets. Henk-Jan Rutgers, key account director and partner at Novagraaf, the Netherlands, considers how to ensure that the value of portfolios in such transactions is properly assessed and maximised.
Marc Cloosterman, CEO of VIM Group, outlines best practices in structuring brand assets following acquisition.