Connecting Brands to Financial Performance
Brands are defined as a type of product manufactured by a particular company under a particular name. Brands consist of many assets including trademarks, copyrights, logos and marketing platforms.
A company’s brand identity is delivered through their advertising which includes their website and social media pages. Brands and brand messages are used to connect a company’s products and services to their customers.
What is a Brand Valuation?
Brand Valuation is the quantification of the contribution to financial performance made by a company’s brand assets. A brand’s worth is determined by calculating the present value of future economic benefits driven by the company’s brand assets.
The Nevium Approach to Brand Valuation
Nevium’s brand valuations analyze the factors that drive a company’s financial performance by determining the interaction between a brand and other related intangible assets. Once the brand’s value has been calculated, we work with management to identify strategies to increase the value of individual brand assets and the overall value of the business. The final work product is a tool that is used to connect brands to financial performance and to increase profits. The company can leverage the brand assets to improve its financial performance by:
- selling more products;
- selling products at a higher price; or
- avoiding costs and expenses.
Key components and takeaway tools of our brand valuation work are:
- Nevium’s Brand Score Tool used to evaluate and compare brands across multiple dimensions;
- IP Valuation Apportionment Model used to value the contribution to financial performance provided by brands and other intangible assets; and
- Website and Social Media Analytic Tool used to identify which assets are driving traffic
More information about these and other innovative Nevium analytical tools can be found on the Nevium Tool Kit page.
For further insight on brand valuation, see our article in the Value Examiner.
Nevium’s Brand Valuation Experience
Nevium has provided brand valuations for:
- Transaction due diligence;
- Evaluation of brand extensions and licensing opportunities;
- Comparing pricing strategies;
- Evaluating marketing initiatives;
- Valued the contribution of a company’s current brand name and the value at risk if the name was changed; and
- Brand valuation for a not-for-profit professional training organization which was used as a guide in the development of new product pricing strategies, licensing models and new revenue models that contributed to top-line growth of over 30%.