Brand Finance Asia Pacific

The Role of Brands in Driving Enterprise Value

Press Release   •   Feb 04, 2013 14:04 SGT

Intangible assets have traditionally tipped the scales over tangible assets to create value for companies and the global economy. The global average of intangibles (over the tangibles) was 51% in

A company's Brand Value to Enterprise Value (BV vs EV) is a good inidctaor to understand the strength of the brand from a business contribution perspective. It helps one see if the brand is driving the business or the business driving the brand. Having a double digit BV to EV is a good starting point. it would also help to see if the average BV/EV percentage is aliged to the category average e.g. if the retail BV to EV % is 24% and your BV to EV 5 is 14%, clearly there is a lot more to be done in orde to make the brand more competitve in the retail category and the industry.

The traditional way of encompassing brands involves a complex combination of identifiers, which can include legal protection (e.g. trademarks, service marks, certification marks, collective marks, patents and copyrights), logos, packaging, colour and a story to trigger emotions. However, there is more to building a strong brand through visibility. 

Brands create value by shifting both the demand and the supply curves. on the demand side they influence consumer behaviour leading to greater trial, improved frequency of use, increased loyalty and a willingness to pay a price premium. On the supply side, strong brands can attract better talent, influence terms of trade, and even reduce the cost of capital.

Brands allow the opportunity to compete,  the opportnity to grow and the opportunity for sustained balance sheet returns.

 

To know more about Brand Value, Brand rankings and the BV to EV ifustry averages, please get in touch with Samir Dixit at s.dixit@brandfinance.com

 

 

About Brand Finance


Brand Finance plc, the world’s leading brand valuation consultancy, advises strongly branded
organisations on maximising their brand value through effective management of their brands and intangible assets. 

Founded in 1996, Brand Finance has performed thousands of branded business, brand and intangible asset valuations worth trillions of dollars.

Its clients include international bluechip brands, tax authorities, Intellectual Property lawyers and
investment banks. Its work is frequently peer-reviewed by the big four audit practices and its reports have been accepted by various regulatory bodies, including the UK Takeover Panel.

Brand Finance is headquartered in London and has a network of international offices in over 20 countries.

Samir Dixit

Managing Director

Brand Finance (S) Pte Ltd

Email: s.dixit@brandfinance.com

M: +65 90698651