Brand valuation
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In today’s increasingly globalized and competitive business environment, brand valuation has become an essential tool for companies, entrepreneurs and investors. Knowing the real value of a brand not only provides security in purchase and sale transactions, licenses and mergers, but also acts as a driving force to design expansion strategies, optimize tax planning and strengthen the negotiating position with financial institutions and strategic partners. In Tecnitasa Group, we have a multidisciplinary team that uses internationally recognized methodologies and market data analysis to offer valuation reports that combine technical rigor, transparency and vision of the future.
What is brand valuation?
Brand valuation is the procedure by which the economic value of a trademark, understood as an intangible asset of great relevance for the company, is estimated. This process combines objective data – such as market share, attributable revenues and profit margins –with more qualitative parameters, such as notoriety, perception of quality and consumer loyalty.
By quantifying these elements, a figure is obtained that reflects the brand’s capacity to generate sustainable profits in the future and contributes to strategic decision-making: from mergers and acquisitions to communication campaigns or the design of licenses and franchises. Furthermore, the rigorous valuation of the brand facilitates its inclusion in the financial statements and supports negotiation with investors and financial institutions.
> Key factors influencing brand valuation
The valuation of a brand depends on a combination of quantitative and qualitative elements that define its ability to generate competitive advantage and future benefits. These include:
Recognition and prestige
A brand’s notoriety, both in terms of spontaneous and suggested recognition, and the perception it arouses in the public, directly condition its value. A brand with high prestige is usually associated with positive attributes (quality, innovation, trust) that justify higher prices and generate a greater impact on purchase decisions.
Positioning and market share
The brand’s position within its sector – whether as a leader, follower or specialized niche – and the percentage of sales it captures with respect to the competition are decisive in assessing its strength. A high market share indicates leverage, economies of scale and barriers to entry for new competitors.
Legal protection and trademark registration
The brand’s contribution to the company’s financial results, measured through its net income and margins -especially EBITDA-, reflects its pricing power and operational efficiency. Recurring or subscription-based lines of business tend to increase the predictability of flows and, therefore, the value assigned.
Legal protection and trademark registration
Having a solid registration in the relevant classes of the Nice Classification, accompanied by a clean litigation history and a broad territorial scope, reduces risks and adds security to the investor. The greater the international coverage and the more robust the IP portfolio, the higher the valuation of the intangible asset.
Durability and customer loyalty
The ability to retain customers over time and the brand’s longevity in the market reinforce the reliability of your future revenues. A loyal customer base not only ensures recurring sales, but also brand advocates who organically amplify your reputation.
> Why is it important to value a brand?
Having an official valuation provides multiple strategic and operational benefits:
Determine its real value
Incorporate brand value into the balance sheet balance sheet puts a value on assets that would otherwise remain invisible. This makes it easier to make investment decisions, establish appropriate leverage ratios and meet accounting requirements, which require the correct identification and valuation of intangibles in an acquisition.
Facilitate the sale and purchase or assignment of rights
In M&A transactions or licensing agreements, having an objective and defensible valuation report reduces negotiation times, narrows the field of conflict and provides legal certainty. Both parties can agree on a price based on market data and financial projections, minimizing the risk of later challenges.
Obtain financing and bank backing
Many financial institutions and investment funds accept valued intangible assets as collateral. An accredited technical report allows for better repayment terms and more competitive interest rates by offering additional collateral that is not limited to tangible assets.a.
Optimize taxation and accounting
Brand valuation is key to take advantage of tax incentives related to the amortization of intangibles, as well as to plan the tax burden in business reorganization operations. A sound valuation avoids tax contingencies and facilitates transparency before the tax authorities.
Support in litigation and intellectual property disputes
In legal disputes over trademark infringement, an expert appraisal of the valuation expertise provides a justifiable economic figure for the damage caused. This is essential for claiming adequate compensation and defending the company’s rights in court and arbitration.
Benefits of hiring a professional trademark appraisal service
To ensure maximum reliability and usefulness of the valuation reports, it is advisable to use appraisal companies with a specialized team. The main benefits are:
Intellectual property and branding experience
At Group Tecnitasa we combine knowledge to analyze the brand from all aspects: financial, legal and market perception. This comprehensive vision is key to capture nuances that influence value and that could go unnoticed in more basic valuations.
Continuous updating and focus on trends
We incorporate digital metrics (e.g., share of searchsentiment analysis in social networks), social media ESG (environmental, social and governance) and post-pandemic behaviors that influence brand perception and value. This allows us to accurately reflect current market dynamics.
Discover other appraisal and/or valuation services
In addition to trademarks, Tecnitasa Group offers appraisals and valuations of all types of assets. Its specialist team
applies specific criteria for each type of asset, adapting to the particular needs of clients.
Latest news on valuations
Check our blog for up-to-date news and specialized articles on the appraisal industry. We offer information on trends, market changes, regulations and advice for owners and investors in this segment.
In Group Tecnitasa we combine independence, speed and in-depth knowledge of the market and regulations to offer you brand valuations that meet your objectives: support in financing, corporate transactions, tax optimization or legal defense. Contact us and receive a no-obligation quote, tailored to your industry needs.
