Bundling Intellectual Property Enhances Asset Value, Increases Appeal to Investors and Banks
Client: Sunglasses Manufacturer
Challenge: Identify True Value of Brand Name
For financial decision-making, the manufacturer of a popular brand of sunglasses needed to determine the full value of its brand name. Brand value falls under the category of intellectual property, or IP. Historically, IP has been narrowly defined as items that can be registered under and protected by legal instruments such as patents and copyrights.
AccuVal Approach
Instead of limiting the review of the brand value to the legal documents that secured the rights to the trademark, AccuVal took a broader view and examined all complementary assets that made up the brand beyond its trademark rights. These included its market recognition, customer loyalty, advertising campaigns and supplier relationships.
Bottom Line: Brand Becomes More Attractive to Potential Buyers and Licensees
When those assets were grouped as a salable bundle, the brand was sought after by buyers and competitors. Enhancing the brand's IP value meant that potential buyers could continue to use the brand on subcontractor-manufactured sunglasses, rename lesser-known brands and use the brand for line extensions. Although the company had no manufacturing assets and few tangible assets, AccuVal found salable assets that helped the operation obtain financing to launch new initiatives to expand sales.
The AccuVal AdVantage™
Expertise to uncover, bundle and maximize the value of intellectual property. Creating strategies that result in brand extensions. Experience in virtually every industry and product category. Valuations that include real market information, financial performance, barriers to entry and competitive factors. That's The AccuVal AdVantage™ at work.
© 2013 AccuVal Associates, Inc. All Rights Reserved