Brand Valuation Services: ISO 10668 and IVS 210 Compliant Brand Value Reports
Brand valuation is the process of measuring the monetary value of a brand as of a specific date by analysing its financial and perceptual strength. At Anatrica Partners we measure the economic benefit a brand generates using the Relief from Royalty, Price Premium and With-and-Without methods, and present the result in a defensible report.
At a Glance: Our Brand Valuation Service
A brand is more than a name or a logo. It represents the trust your customers place in you, your reputation in the sector, customer loyalty and the intangible value built up over the years. Brand valuation turns these elements into a concrete financial figure.
- Methods: Relief from Royalty, Price Premium, With and Without; market and cost approaches as cross-checks
- Standards: ISO 10668 and the International Valuation Standards (IVS 210)
- Timeline: 3–5 weeks with a ready data set
- Output: Brand value range, assumption set and sensitivity analysis
- Fee: Fixed fee with no component tied to the resulting value
- Uses: Sale and M&A, licensing and franchising, intra-group transfers, investment and financing
The Anatrica Partners view: The most common mistake we see in M&A processes is business owners either overstating their brand value or, far more often, seriously underestimating it. A professional valuation prevents both.
Why Is a Brand Valuation Carried Out?
Brand valuation makes the economic benefit a brand brings to the company measurable. These are the six uses we see most often:
Reveals the value that does not show on the balance sheet
Your reputation with customers, your recognition and the trust you have built all have a financial equivalent. To value the company as a whole, a separate business valuation is carried out.
Grounds strategic decisions in data
Knowing what your brand is worth informs decisions from the marketing budget to entering new markets.
Strengthens your hand in negotiations
In mergers, acquisitions or partnership talks, whether you are buying or selling, you come to the table with hard numbers. We manage the full process under our sell-side advisory service.
Sets the ground for licensing and franchise talks
If you license your brand or plan to franchise it, showing the economic basis of the royalty rate frames the negotiation.
Makes it easier to attract investors and finance
Investors and banks always assess a brand’s strength and financial contribution; an independent report gives that assessment a solid footing.
Clarifies intra-group arrangements
In many groups the brand rights sit in a different legal entity from the operating company. A valuation establishes the basis for intra-group royalties and for the rights that pass to a buyer in a share transfer.
Brand Valuation Methods
We use three income methods to measure a brand’s economic contribution and bring in the market and cost approaches to test the reasonableness of the result. Which one leads depends on the brand’s characteristics and the quality of the available data.
Relief from Royalty
Assumes the company does not own the brand and uses it under licence, and measures the saving on the notional royalty it would otherwise pay. This is the method we use most often; it fits where branded sales can be isolated and comparable royalty rates exist.
Worked example →Price Premium
Measures the price difference a branded product commands over a comparable product, net of the additional advertising, distribution and selling costs incurred to support the brand. It works best where the brand’s main benefit is pricing power.
Worked example →With and Without
Discounts to present value the difference in cash flows between a scenario with the brand and one without it. Preferred where the brand’s effect extends to volume, customer attrition and distribution reach.
Worked example →Market and Cost Approaches
Based on prices paid for similar brand rights and on the cost of recreating the brand. Used not as the primary method but to test the reasonableness of the income-approach result.
Worked example →We start the royalty rate from comparable licence agreements, then check the comparable’s scope, exclusivity, term and which party bears marketing costs. The selected rate must be economically sustainable within the company’s operating margin. For a detailed explanation and worked examples, see How is brand value calculated?
The Brand Valuation Process, Step by Step
We run every brand valuation in six steps. With a ready data set, a typical engagement takes three to five weeks.
Analysis of Brand Assets and Market Position
We measure brand awareness, reputation and customer loyalty, benchmark your market position against competitors, and assess brand-related income such as licence fees, royalties and price premiums.
Collection and Analysis of Financial Data
We gather and analyse financial statements, profitability and growth rates, customer and segmentation data, marketing and advertising spend, and sector trends.
Selection of Valuation Methods
We select the method or combination of methods best suited to the brand’s field of activity, position and revenue model: Relief from Royalty, Price Premium, With and Without, with market and cost approaches in support.
Analysis of Brand Strength and Customer Behaviour
This is where we meet the behavioural analysis requirement of ISO 10668. We separate whether price premium and volume effects truly come from the brand or from product features, and justify the cash flow attributable to the brand.
Financial Modelling and Calculations
We forecast future income streams, test the reasonableness of the result against comparable brand transfers and licences, and present the outcome as a value range together with a sensitivity analysis.
Reporting and Presentation
We prepare a report in line with the International Valuation Standards that sets out the methods, the calculations and the assumptions with the greatest effect on value (royalty rate, growth, economic life, discount rate), and present it to you.
What Does a Brand Valuation Report Include?
We build the report not around a single number but to show under which assumptions that number changes. Every report has seven sections:
- Scope and basis of valueValuation date, product classes, geographic scope and the rights being valued.
- Findings of the three analysesThe legal, behavioural and financial analyses required by ISO 10668 and how they feed into cash flow assumptions.
- Results by methodThe results of each method side by side, and where the differences come from.
- Assumption setRoyalty rate, growth, discount rate and the brand’s economic life, each with its rationale.
- Sensitivity analysisThe impact of changes in key assumptions on brand value.
- Double-counting checkHow the brand value relates to the business valuation, showing the same earnings are not counted twice.
- Tax amortisation benefitWhether the TAB is included in the calculation, and why.
Documents We Will Request
- Financial statements for the last three years
- Sales and pricing data by brand, broken down by product, country and sales channel
- Breakdown of marketing and advertising spend on the brand
- Trademark registration certificates
- Licence, distribution and franchise agreements
- Intra-group brand use and transfer agreements
Two things typically slow an engagement down: sales that cannot be separated by brand and channel, and brand rights spread across different companies within the group.
Schedule an initial meeting →How Is the Brand Valuation Fee Determined?
We price brand valuation work on a fixed-fee basis; there is no component linked to the size of the result. Because our fee is unaffected by the value, we have no incentive to show a higher number. This is decisive for the independence of the report.
After the initial meeting we confirm scope and timeline and provide a written proposal. Brand valuation can be commissioned on its own or as part of a business valuation.
What Drives the Fee
- Number of product classes and geographies in which the brand is used
- Whether sales data can be separated by brand
- How brand rights are distributed within the group
- The intended use of the report
Why Choose Anatrica Partners for Brand Valuation?
Brand valuation is not just numbers; it is a multidisciplinary exercise that requires knowledge, experience and strategic perspective.
Drawing on our M&A experience, we do not only calculate your brand’s value; we show you how to defend it in negotiations.
In monetary brand valuation we carry out the legal, behavioural and financial analyses required by ISO 10668 together, and prepare the report in line with IVS 210.
We test the primary result against other methods to establish a reliable value range for your brand.
We know the SME landscape closely and propose a scope that fits your needs and budget.
We design the valuation as a tool for licence talks, partnership negotiations or a sale process, and work with you on how to defend the result at each table.
Because we work on a fixed fee, we have no financial interest in the value that appears in the report.
Brand Valuation FAQ
The questions brand owners ask most often before a valuation. For more, see our brand valuation FAQ.
Do I need a brand valuation as a small business?
Whatever the size of your company, your brand is an asset. If you are considering growth, investment or a sale, knowing your brand’s value gives you a concrete basis for negotiation and planning.
Can start-ups have a brand valuation?
Yes. The value of new brands can be estimated from the business model, market expectations and growth projections. Because historical data is limited, justifying assumptions and running sensitivity analysis matter even more in these engagements.
Can I calculate my brand value myself?
A rough estimate is possible, but a defensible result requires basing the royalty rate on comparables, isolating the cash flow attributable to the brand and testing the assumptions. An independent report carries more weight with buyers, investors or tax authorities.
Does trademark registration affect my brand value?
Registration secures the brand legally and makes it a transferable right, which lowers risk for buyers and investors. Registration alone does not add value, however; value comes from the economic benefit the registered right generates. What matters most in a valuation is which product classes and geographies the registration covers and which rights pass to a buyer after a share transfer.
What is the difference between brand valuation and business valuation?
A business valuation covers all tangible and intangible assets. A brand valuation focuses solely on the financial value of the brand itself. The brand is an important component of company value, and in some cases the largest.
How is brand value calculated?
We most often use Relief from Royalty: a comparable royalty rate is applied to branded sales, and the after-tax royalty savings are discounted to present value over the brand’s economic life. Price Premium and With-and-Without come to the fore when the brand’s benefit comes through price or volume. Worked examples: how is brand value calculated.
What should I do if my brand value is lower than expected?
The sensitivity analysis in the report shows which assumption drives value most. Use it to separate the reasons for the lower value (market changes, competition, perception issues) and rebuild your marketing, product and customer relationship strategies accordingly.
What happens to the brand in a company sale?
A brand can be sold together with the company or traded as a separate asset. Which rights pass to the buyer in a share transfer depends on the product classes and geographies covered by the registration.
Brand Valuation Request Form
Call us at +90 212 706 72 58 or fill out our form, and we will get back to you as soon as possible.