The business valuation process is a challenging task. While the valuation of a brand may seem simple and appealing, they offer proper financial techniques, the truth is the bigger a brand is, the more complex and challenging the task of brand valuation is. A lot of factors should be taken into account and the valuation of trademarks, patents, goodwill, etc. also play a major role in the process.
The techniques under this method are concerned with the costs that are used in creating or replacing the brand. It is further subdivided into the following methods:
The Formulary techniques are those that are significantly used commercially by consulting other organizations. This method is similar to the income or economic use approach differing in the magnitude of commercial usage and employing multiple criteria to decide the value of the brand. As we mentioned various techniques above, it is clear that a valuation of a brand is a challenging and tricky task no matter where brand valuation is done. Each brand may require a different technique. Some firms follow the Income approach for brand valuation in Mumbai, on the other hand, various firms use a combination of cost and formulary approach for brand valuation in Gurugram. It is on the will and analysis of the analyser, what approach they think is the best for them.
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