While it may be natural to assume that brand intangibles are most important in consumer products and services, it is wrong to assume that they don’t matter for finance firms. In this piece from WSJ’s Private Equity Beat, Ayesha Javed explores the importance of brand names to private equity shops.
Noting that the list of Roman and Greek gods is pretty well exhausted, Javed surveys some of the other available options, weighing the pros and cons for enterprising PE pros.
Measuring the fair value of brand intangibles requires an understanding of the subject company’s business, the industry in which the company operates and how revenue is generated. Ultimately, brand intangibles are valuable because they enhance the expected future cash flows of the firm, either through higher revenue or superior margins.
Mercer Capital’s fair value reporting professionals have years of experience valuing tradename and other brand intangibles in a wide variety of industries using auditor-friendly valuation techniques and benchmark market data.
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