Commercial DD- How do you evaluate the value of a company's brand?

This topic contains 3 replies, has 4 voices, and was last updated by  Christian Münnich 2 weeks, 3 days ago.

Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • #117716

    Hannah Barber
    Participant

    How do you evaluate the value of a company’s brand during commercial due diligence?

    #117847

    can start with how your competitor react perhaps?

    #117906


    Participant

    Hi Hannah

    From my experience the value of the brand is all about what additional benefit (in the form of profit most the time time), having the brand gives, compared to not having the brand. I have found the best way of doing this is to determine what cash flows one can generate as a result of the existing business and brand, compared to what i would be able to generate if i was using my own no name brand. In most instances the difference although difficult to strip out, will give a good indication. I am in the Groceries sector, we bought a store, it performed moderately for 4 years, we changed its brand name to a well known one we own, and overnight the store performed well. Was quite an amazing case study.

    M

    #118522

    Christian Münnich
    Participant

    Hi Hannah,

    you might want to use a Conjoint Analysis, using the brand as one attribute.
    Based on the part-worth utility, the resulting impact on WTP and sales volume you can derive the monetary value of the brand for a product/service.

    Best
    Christian

Viewing 4 posts - 1 through 4 (of 4 total)

You must be logged in to reply to this topic.

Loading.. Please wait