Brand Valuation of Intangible Assets: Hot Topics for 2014 and Beyond
Overview:Brand valuation generates a lot of buzz these days, particularly in the area of intangible assets. Intangible assets with their underlying intellectual property are likely to be increasingly more valuable in the ever evolving digital age where social networking and viral marketing are playing key roles in brand identity. It’s not unforeseeable in the near future to anticipate the need for brand valuation of intangible assets from both a management and transactional point of view.
This course offers an overview of the latest trends, hot topics and best practices with respect to brand valuation of intangible assets. A panel of thought leaders and practitioners will help executives & attorneys better understand the use brand valuation of intangible assets. They will also share practical guidance on how to effectively employ common strategies with respect to preserving brand value while preventing potential pitfalls.
Kristin Geboers, Senior Manager Product Marketing,
- Essential in brand value creation: get the basics right
- The brand life cycle
- Name Creation: What Can Be Registered?
- Name Creation: Choose Your Trademark Wisely
- Trademark Clearance: Best Practices
- Trademark Registration: Best Practices
- Trademark Management / Renewal: Best Practices
- Trademark Protection: Best Practices
- Online Brand Protection: Business Challenges
- 3 Key Take Aways
Scott D. Hakala, Ph.D., CFA, Managing Director,
CBIZ Valuation Group, LLC
- Identification of the nature and reasons for value of the brand is critical to valuation:
- Is it protected: trade dress or trademark or registered company name?
- Signal of quality, association with reputation of company and company goodwill
- Provides a barrier to entry and competition
- Familiarity leading to greater visibility and volume sales
- The Costs of Maintaining and Retaining Brand Value Need to Be Identified and Measured
- Value erodes naturally over time in the absence of effort and may erode as a result of “regression to the mean”
- Advertising and marketing expense and strategy tied to brand value need to be identified and quantified
- Cost of maintaining image and quality, preserving quality control may need to be additionally quantified
- How do Brands generate value, revenue?
- Caveat: Often brand value is not easily separated from goodwill and customer relationships and intellectual property
- Enhancement of revenues through premium pricing (increased pricing and greater gross margins) or greater volumes or some combination of the two relative to generic competition
- Reduction in direct selling expenses and marketing and advertising expense through “walk in” or often now “click through” sales as a result of “front of mind” presence of brand
- Valuation is often not simple and may be subjective or produce a range of value.
- Revenue benefits may be separately modeled or approximated by a relief from royalty method. Relief from royalty needs to be estimated by some method of comparison with generic or guideline reference prices, rates, volumes.
- Expenses associated with increasing or maintaining brand awareness and perceived quality/reputation need to be identified and grossed up for overhead and management.
- The profits and value associated with a brand are often limited by the overall margins and the existence of other intangible and tangible assets required to generate the associated revenues. This can and surprisingly often does mean well-known brands may have little real value (Surprising examples!).
- Future income must be forecast with realistic projections of risk of declining revenue and expenses or modeled with some attrition rate over time.
- Discount rates are typically greater than the cost of capital of the company and are typically associated with greater systematic risk and less leverage and more equity associated with brand values.
- Issues with valuation of brands in the context of allocation of purchase price and asset impairment/goodwill impairment studies
- Concept of capital charges for use of assets
- Reconciling values such that the sum of parts equals the whole
- Priority in valuation and allocation when the sum of the values of assets exceed the value of the business
- Brands sometimes sell for consideration after the business fails.
- Why and what is the buyer paying for? Examples.
- Brand valuation in the context of trademark, trade dress or copyright infringement actions.
Thomas Giordano, ASA, CFA , Director,
Anchin, Block & Anchin LLP
- Brand – Overview
- Recent News
- Brand Value
- Top Brands
- Brand Value – Methods – a Standard
- Valuation Approaches
- Income Methods
- Background Inputs
- Valuation Purposes
- Brand – Value & Equity – Perspective
Who Should Attend:
- General Counsel Biotech, Pharma, Manufacturing, IT, Web, Public & Private Companies
- Senior IP Counsel
- IP & Related Attorneys
- In-House Counsel
- Copyright Lawyers
- IP Attorneys & Consultants
- IP and Copyright Consultants
- Corporate Senior Management
- Marketing/Advertising Directors & Executives
- Brand Managers
Thomas Giordano, a director in Anchin's Litigation, Forensic and Valuation Services Group, is responsible for performing and managing valuation projects, including litigation consulting engagements. He has expertise in valuing securities of privately held and publicly owned companies, commercial transactions and intangible property. He has been responsible for valuations performed for litigation, financial statements, mergers and acquisitions, strategic planning, and gift, estate and income taxes. He has more than 25 years of experience in business valuation serving a broad spectrum of clients including the manufacturing, technology, banking, financial services, hospitality and service industries. Mr. Giordano has also been qualified to render expert testimony in more than 30 cases in Federal and State Courts and NYSE, NASD and American Arbitration Association panels on valuation issues in shareholder disputes, lost profits and value, business appraisals and brokerage raiding.
Thomas Giordano, a director in Anchin's Litigation, Forensic and Valuation Services Group, is responsible for performing and managing valuation projects, …
Kristin joined Thomson Reuters in 2007 as a Market Manager at Thomson CompuMark. Thomson CompuMark provides the industry's broadest range of trademark research and brand protection solutions. They enable trademark and brand professionals worldwide to launch, expand and protect strong brands through unmatched global content, expert analysis and tools, and best-in-class service.
In her current role as Senior Marketing Manager she sets the marketing strategy for the Trademarks business worldwide, within Thomson Reuters IP Solutions. Previous experience includes various B2B marketing positions in the telecommunications industry. Kristin holds a Masters degree in Communication Sciences from the VUB in Brussels and an Executive MBA from UAMS in Antwerp.
Kristin joined Thomson Reuters in 2007 as a Market Manager at Thomson CompuMark. Thomson CompuMark provides the industry's broadest range …
Dr. Hakala is a managing director in the Southwest Region of CBIZ Valuation Group. He has extensive practical knowledge of finance, economics and statistics and is responsible for managing projects such as the valuation of both small and large businesses as well as providing economic analysis and forecasts of future demand. Dr. Hakala serves as an expert and testifies frequently. He co-authored two articles on the valuation of distressed companies and has extensive experience analyzing and advising companies in financial distress, including companies in the healthcare industry. He has managed a number of valuations involving long-term care and nursing home facilities. Additional significant engagements include: transfer pricing, shareholder disputes, determinations of materiality and damages, valuations of options and derivative securities, fairness opinions and due diligence assistance, and valuations for merger and acquisition purposes.
Dr. Hakala is a managing director in the Southwest Region of CBIZ Valuation Group. He has extensive practical knowledge of …
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Method of Presentation:
On-demand Webcast (CLE)
NASBA Field of Study:
Specialized Knowledge and Applications - 2.00 credit hours
NY Category of CLE credit:
Law Practice Management
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About Anchin, Block & Anchin LLP
Founded in 1923 as a three-man partnership, Anchin Block & Anchin has developed into one of the largest and most highly respected accounting and advisory firms in the region. The firm's exclusive focus is on providing the highest level of service and benefits to privately held businesses. We provide a full range of services, including audits, reviews and compilations of financial statements; tax preparation and strategies; detailed analysis of acquisitions and financial restructuring; expert financial advice; tax incentives and strategies; management and succession advisory services; litigation support and forensic accounting and business profitability consulting. - See more at: https://www.anchin.com
About Thomson Reuters
Thomson Reuters is the world’s leading source of intelligent information for businesses and professionals. We combine industry expertise with innovative technology to deliver critical information to decision makers in the financial, legal, tax and accounting, scientific, healthcare and media markets, powered by the world’s most trusted news organization.
The IP Solutions business of Thomson Reuters helps professionals worldwide drive innovation, protect intellectual assets, and create maximum value from their ideas by providing solutions that power the intellectual property lifecycle. Learn how we can help you athttps://ip.thomsonreuters.com.
About CBIZ Valuation Group, LLC
CBIZ Valuation Group is a national company that excels as a premier, full service valuation firm dedicated to the “art and science” of valuation, financial advisory and litigation support services. It is the choice for independent valuation services including financial valuation, litigation support, real estate valuation and tangible asset valuation. CBIZ Valuation Group professionals have an unwavering commitment to client service and strive to attain the highest level of technical proficiency and valuation standards. The company is a wholly owned subsidiary of CBIZ, Inc. (CBIZ), a publicly traded professional services firm.