The emergence of intangible values
The dematerialised or digital economy has changed the paradigms for calculating the value of a company and/or its brand.
The turning point on a global scale was Facebook’s takeover of WhatsApp – the purchase price was based on the intangible values of the brand and data, not turnover, EBIT or ROI.
In this way, the brand has become the focus of all financial, legal and marketing attention as a ‘capitalizer’ of future results.
Delors, whether for a sale, a recapitalisation or a bank loan, the value of the brand must be taken into consideration.
Legal aspects
It is important to specify :
That the financial value of a trademark can only be considered if it has been duly registered with an official trademark registration body. In Switzerland, this is the IGE – Institut Fédéral de la Propriété Intellectuelle – and in France, it is the INPI.
A trademark can be registered by
→ product class – depending on your activity
→ country or group of countries, EU trademark, international trademark.
Simply being registered in a trade register does not give the trademark legal protection.
The 1st standard dedicated to the financial evaluation of the brand is ISO 10668.
https://www.iso.org/standard/46032.html
What this definition does not specifically specify in terms of valuation is that the brand is linked to its Data.
WhatsApp’s value lies in its 2 billion users and their phone numbers.
1. Justified value
- Financial result/Ebitda
- Value of assets
(patents, real estate, trade marks)
2. Probable justified value
Add intangible values
Brand/patent + data
- Cognitive value of the brand
- Brand/patent market segment potential
- Copyright / know-how
- Value/valuation of Data
- Compliance / regulations
- Cybersecurity
This valuation method, inspired by the valuation of mineral resources, gives an overall view of a brand’s current capacity and potential for development – just as for a property – the valuation includes the existing assets and potential for development..
3. Probable potential justified value
- Development of other product classes
- Territorial development
- Brand/potential patents
These 3 parameters are used to calculate the value of the brand in each context.
Things to remember
The value of your company includes the value of its brands and Data, whether that brand is global or local. So take care of your brand, its sustainability values and its visibility.
Compagny Staging – service ofSwiss House of Brands
Prepare your company for sale by revaluing your intangible asset, the brand→ increase the value of your company – on average 30% more for SMEs
- Audit of the brand and its potential markets
- Updating/modernising the cognitive brand (positioning, visibility)
- Potential opening up of market segments – development potential
- Making the most of Data
Case handled by our firm:
A trust company in French-speaking Switzerland whose founder wanted to retire but couldn’t find a buyer.
– An analysis of its client base showed that the majority of its clients were active in the legal field.
– The brand has been repositioned on this specificity
– An international company supplying software for lawyers has bought out our trustee’s brand.
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