The useful life of the brand must be estimated because possible cash flows beyond the useful life may not be included in the brand valuation. When estimating the service life, trends in the respective industry must also be taken into account. All cash flows must also be calculated after taxes, taking into account tax benefits associated with depreciation. If these tax benefits are related, they must be calculated and accounted for separately. In the brand valuation report, it must be clear that the brand value includes tax advantages. Download List Market Price-Based Procedures In market price-based procedures.
Brands are valued on the basis of market prices paid for comparable transactions during the relevant time period. Possible synergies and strategic value when selling the brand should be considered here. Market prices at comparable stores must also be revised using a multiplier to account for potential differences between whatsapp mobile number list brands. Comparable brands are those that have similar brand strength and comparable merchandise, as well as similar economic and legal situations. Also, it should be considered that this is a realistic estimate and can be realized as a market price. Cost-Based Approach In a cost-based approach, brand valuation is based on the costs incurred to build the brand or the costs incurred to replicate it.
For this purpose, all costs incurred for the establishment and protection of the brand, or necessary for its reproduction, shall be calculated at market prices. However, it must be seen that cost does have an impact on brand value. Costs that do not affect brand equity should not be considered in brand valuation. All programs required In all three programs explained, a market analysis regarding market capacity, market value and profit margins is also included in the assessment. In addition, brand evaluations against the criteria must be conducted by independent and objective evaluators.