A business legally differentiates its products and services with trademarks. Usually a trademark protects a logo, name, phrase, design, or any combination of these branding elements. Trademarks also serve as valuable intangible assets. Intangible and tangible assets are part of a company’s overall worth, and as technology evolves and more businesses look for a competitive edge, the importance of valuing trademarks and patents becomes critical.
There are many situations where businesses are required to have a trademark appraisal, such as for mergers and acquisitions. The Financial Accounting Standards Board Statement of Business Combinations (ASC 805 (formerly FASB 141)) requires a disclosure of trademark values. This statement attests to the importance a trademark appraisal plays in understanding the overall value of a business. Most successful businesses understand that trademark valuations help protect brands by providing evidentiary support of value. Some other motivating factors for trademark valuations include: bankruptcy, trademark sale and/or purchase, tax reporting, litigation support and determining royalty rates for licensing purposes.
Appraisal Economics is an industry leader in performing trademark appraisals and other business valuation services. Please contact our professionals for more information about these services and our proven methods for accurate, defensible appraisals.
Our Trademark Appraisal Process
Appraisal Economics uses a proven methodology in calculating the valuation of trademarks. Our initial step in the trademark valuation process is an informational meeting with the company’s management team. We review both the historical records and financial projections associated with all trademarks. These discussions reveal imperative information regarding name recognition, advertising expenses and results, competition, overall financial performance, and prospects for the future – all key to an accurate trademark appraisal. We then perform an in-depth search to gather information on market royalty rates for comparable trademarks. A trademark valuation is not complete without an analysis of historical investments that helps show how trademarks were promoted. We are then able to provide a complete financial analysis, including development of all assumptions and valuation models, sufficient to determine both the royalty rate and fair market value of the trademarks.
Business Valuation Experts
Appraisal Economics is an industry leader in providing accurate trademark valuations. We are committed to providing supportable, objective trademark valuations in a well-organized appraisal report that is delivered in a timely manner. Our services not only include trademark appraisals, but also other valuation services such as solar power valuation, transfer pricing, copyright appraisals, and litigation support, where our staff is experienced in a variety of high pressure legal situations. Our staff are often asked for comment and quoted in news articles on valuation topics, including this Bloomberg article about the trademarks of the 2016 Republican presidential nominee.
Please contact our professionals regarding your trademark valuation needs or other valuation related services that we provide.