Trademark valuation is one of the most prominent exercises performed when company tries to sell off their stakes or going for overtaking or looking for franchise distribution or for many other corporate transactions. A trademark valuation exercise comprises many parameters related to the brand and related trademarks or logo.
What is a Trademark Valuation/Evaluation?
Trademark valuation is the job of estimating the total financial value of the brand. Like the valuation of any product, or self review, a conflict of interest exists if those that value the brand also were involved in its creation. Trademark valuation is done through various methods comprising:
- Cost-based method – There are two general considerations to the cost approach for trademark valuation: 1) the historic cost of creating the trademark and the estimated cost; and 2) time that would be required to create an equivalent or replacement trademark.
- Market-based method – The market approach for trademark valuation uses market based indicators of value. For trademarks this can be transactions involving selling, buying, franchising or licensing IP rights, which are often in practice bundled with other deals.
- Income-based method – The income based approach for trademark valuation uses estimates of future estimated economic benefits or cash flows and discounts them, for the associated time and risks involved, to a present value.
For Example – LG, a South Korean Giant, has a Brand valuation of approximately $ 2.8 Bn while revenue of the LG in 2018 was $ 1.3 Bn. Hence, a brand valuation is cumulative sum of how much transactional power a brand name holds in the market.
How MuBrand™ assists the businesses looking for their brand value estimation?
MuBrand™ is a free web tool for high probability approximating a value of the brand derived through analysis of more than 100 brand valuations done in different markets and technological domains. MuBrand™ uses a plurality of parameters such as Legal status of trademarks, No. of countries in which the trademark is filed, and revenue generated by the registered/pending trademarked product.
MuBrand™ gives a fare idea of a brand value and what should be the asking price by the business owner in case of company stocks sell-off or company overtaking or franchise distribution. Also, if a business wants to evaluate their brand and has to consider the value of their trademark/brand, then MuBrand™ offers them a free and fast solution to do the same.
However, a certified valuation report done through an experienced valuation team is more likely to be advised to do final trading for stakes sell off or company overtaking or franchise distribution or for many other corporate transactions. To Get Idea of Your Brand Value, Please visit – https://www.ansipms.com/brand-value-calculator-free-tool/