ICM helps clients to understand the brand by creating a business, marketing and financial business model that defines the brand's current and potential value.ICM Advisors has carried out over 200 brand valutation in many consumer and B2B industries, in particular the firm has developed strong experiences and insights in the so-called Made In Italy by creating the first Italian brand data base (Brand Intelligence System) of over 1000 SMEs (30 to 290 Millon Euro turnover). ICM is also the first advisory firm in Europe that offer brand valuation services for collateralized lending in cooperation with IntesaSanpaolo leading European Banking Group. Our services have been tailored for mid-corporate normally in the early stage of brand value management.Robust Brand valuation methodologies and practices are now widely recognised by the business and financial community. ICM Advisors has innovated the brand valuation practice by introducing a formal assessment and valuation of: the branded business, of the Intangible Asset Portfolio and of the Brand Promise Delivery (customer/channel experience). The brand valuation process is supported by extensive business/marketing research and competitive intelligence carried out by our ICM Research division.
The steps to our methodology are as follows:
- Industry/segment analysis
- Branded business Valuation (business model, value drivers, business and financial performance, business/enterprise value sizing)
- Meaningful competitive benchmarking (costs/investments structure analysis against key competitors, marketing investments, distribution strategies, communication strategy)
- Intangible Asset Portfolio Identification (marketing assets, technology assets, reputation, operating model assets, Intellectual Property Rights) and economic valuation
- Brand business/marketing valuation through our Brand Equity Score
- Attractiveness of the industry/segment (size, growth, opportunities, competitive intensity, innovation)
- Brand Positioning and Differentiators (price/quality, consumer and channel experience with key field analysis, brand strategy, longevity)
- Business Impact (profitability, market share, price premium)
- Market Image/Customer Franchise (awareness, loyalty, relevance, perception)
- Brand Management Practices in place (development strategy, marketing budget, brand architecture, brand management competencies, legal protection)
- Brand Financial Valuation (determine royalty rate (sustainable by the business, comparable licensing royalties, Brand Equity Score discount)
- First-cut Brand Potential and valorisation opportunities
WHY BRAND VALUATION?
ICM valuation process and details is tailored against objectives, scope and timing. Companies are facing many business issues and brand valuation provides a powerful framework for strategic decision-making. Today brand valuation plays an essential role in many aspects of business management such as:
Business Strategy
- Understand where and how the brand creates value by market, by customer segment, by product and by channel
- Develop strategies for brand portfolios for investment, divestment and rationalisation (Budget allocation)
- Use brand valuation analysis to determine the optimal value based brand architecture
- Assess the value at risk before corporate or product brand name changes
Marketing, Brand and Advertising Strategy
- Provide common language between finance and marketing senior management by assessing the contribution of the brand to the overall value of the business
- Establish strategies for optimising brand investment & return on brand investment
- Establish appropriate budget allocation by brand, geographic market, customer segment, product type or channel to market
- Size the potential brand value creation from brand extension into new markets, new products or new channels
- Establish a system for the accountability and for of the marketing function
- Establish a reward systems for advertising agencies based on brand value generation
- Understand brand equity and how to track this over time
Financial Leverage
- Size the value of the brand for collateralised lending, lease-back and securitization
- Size the brand value at risk for insurance purposes
- Size appropriate royalty rates for brand licensing to third parties
- Size internal royalty rates for the use of the brand within groups of companies
Business/Financial Communication
- Conduct brand valuations for balance sheet purposes by reporting unit
- Communicate the value added by the brand on an ongoing basis to the investment community
Mergers, Acquisitions and Joint Ventures
- Conduct marketing due diligence to establish the power of the brand(s) acquired to secure the customer franchise
- Establish an appropriate price on acquisition or disposal
- Establish the financial contribution of the brand in joint ventures and alliances
- Separate the value of the brand from goodwill and the rest of the business
|