BRAND & INTANGIBLE ASSET VALUATION
Understanding the Value of Intangible Assets
Brand and intangible asset valuation involves assessing assets that may not have a physical form but can contribute to a business's economic value. The scope of the engagement depends on the nature of the asset, its purpose, relevant valuation date and information available.
BRAND & INTANGIBLE ASSET VALUATION
VALUE CAN EXTEND BEYOND
PHYSICAL ASSETS.
BRAND.
RIGHTS.
Understanding the economic value of intangible assets.
A STRUCTURED APPROACH TO INTANGIBLE ASSET VALUATION
Pensar Valuation considers the commercial, financial, legal and market characteristics relevant to the intangible asset and purpose of the engagement.
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Depending on the assignment, analysis may consider factors such as brand strength, expected economic benefits, underlying rights, market position, projected cash flows, useful life and other relevant asset-specific considerations.
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Brand and intangible asset valuation may support financial reporting, transactions, corporate decisions, regulatory requirements and other valuation purposes.
WHY INTANGIBLE ASSET VALUATION MATTERS
When Is Brand & Intangible Asset Valuation Required?
Brand and intangible asset valuation may be required in connection with transactions, financial reporting, corporate decisions and other situations where the value of an intangible asset needs to be assessed. The purpose of the engagement determines the relevant scope, valuation date and analysis.
FINANCIAL REPORTING
Valuation support for applicable fair value measurement, financial reporting and accounting requirements involving intangible assets.
REGULATORY REQUIREMENTS
Supporting applicable regulatory, statutory and other requirements where valuation of intangible assets is relevant.
BUSINESS & TRANSACTION VALUATION
Supporting acquisitions, disposals, mergers and other transactions where intangible assets may form part of the value being assessed.
BRAND-RELATED DECISIONS
Providing an analytical basis for understanding the economic value of a brand and its contribution within the broader business context.
CORPORATE & STRATEGIC DECISIONS
Providing valuation analysis to support business planning, restructuring, investment and other corporate decisions.
OTHER VALUATION REQUIREMENTS
Supporting other assignments where an independent assessment of a brand or intangible asset is required.
Intangible asset value depends on more than recognition or ownership alone.
The relevant commercial, financial, legal and market considerations are assessed in the context of the asset, valuation purpose and available information.
Our Approach.
Our Brand & Intangible Asset Valuation Process
Each brand and intangible asset valuation engagement is shaped by the nature of the asset, the purpose of the assignment and the information available. Our approach combines financial analysis, commercial understanding and professional judgement to develop a reasoned valuation conclusion.
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DEFINE
UNDERSTAND
ANALYSE
VALUE
REPORT
Understand the requirement
Assess the intangible asset
Evaluate value drivers
Apply appropriate valuation analysis
Document the valuation conclusion
Establish the valuation purpose, relevant valuation date, asset being valued and scope of the engagement.
Review the asset's characteristics, underlying rights, commercial relevance, expected economic benefits and other relevant information.
Consider market position, financial performance, projected economic benefits, useful life, risk and other relevant commercial and financial factors.
Consider relevant valuation approaches, assumptions, financial information and other evidence appropriate to the asset and purpose of the engagement.
Present the relevant methodology, assumptions, analysis and resulting conclusion in an appropriate report format.
VALUATION CONSIDERATIONS
Factors That Influence Brand & Intangible Asset Value
The value of a brand or intangible asset can be influenced by a combination of commercial, financial, legal and market factors. The relevance of each consideration depends on the nature of the asset, its economic role and the purpose of the valuation.
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ECONOMIC BENEFITS
Expected contribution to revenue, earnings, cash flows or other economic benefits associated with the asset.
03
FINANCIAL PERFORMANCE
Historical and projected financial performance relevant to the economic benefits associated with the asset.
05
USEFUL LIFE & OBSOLESCENCE
Expected period of economic benefit, changes in technology or market conditions and other factors affecting continuing utility.
02
MARKET POSITION
Brand strength, competitive position, customer relevance and other factors affecting the asset's commercial standing.
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UNDERLYING RIGHTS
Nature, scope, duration and other characteristics of the rights or interests associated with the asset.
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MARKET & RISK FACTORS
Industry conditions, competition, market dynamics, uncertainty and other risks that may affect expected future benefits.
Intangible asset value is shaped by the economic benefits it can support.
Relevant commercial, financial, legal and market considerations are assessed in the context of the asset and valuation purpose.
VALUATION DELIVERABLES
What a Brand & Intangible Asset Valuation Report Covers
A brand and intangible asset valuation report presents the relevant asset information, scope of the engagement, analysis, assumptions and resulting valuation conclusion in a structured format appropriate to the purpose of the assignment.
01
ASSET & SCOPE
Defining what is being valued
Identification of the intangible asset, relevant characteristics, valuation purpose, valuation date and scope of the engagement.
03
VALUATION ANALYSIS
Applying the appropriate analysis
Relevant assumptions, financial information, market evidence and valuation analysis appropriate to the asset and purpose.
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COMMERCIAL & FINANCIAL ANALYSIS
Assessing relevant value drivers
Relevant commercial information, financial performance, expected economic benefits, market position and other asset-specific considerations.
04
CONCLUSION & REPORTING
Presenting the valuation conclusion
A structured presentation of the methodology, key assumptions, analysis and resulting conclusion of value.
Clear analysis. Reasoned conclusion. Appropriate reporting.
The scope and level of detail of the report depend on the nature of the asset, purpose and circumstances of the engagement.
