Brand Value in Mergers and Acquisitions
Jan Lindemann
Chapter Chapter 10 in The Economy of Brands, 2010, pp 91-95 from Palgrave Macmillan
Abstract:
Abstract Due to their substantial contribution to shareholder value brands have a significant role in most M&A transactions. In the attempt to maximize the proceeds from such transactions buyers and sellers will look at the value of brand assets to see whether it can benefit their position. Depending on the subject of the transaction this can include an asset specific valuation. There are four key areas in which a brand value assessment can benefit an M&A transaction. First, when a business is mainly driven by a brand then the brand value assessment will provide the core of the business valuation. Second, when only the brand is the subject of a transaction without an underlying business then brand valuation is the only way to assess the transaction value. Third, if the transaction is a merger in which two businesses are expected to be united under one brand then it needs to be assessed which brand would add more value to the combined business. Finally, the acquired brands will need to be valued for inclusion on the balance sheet.
Keywords: Cash Flow; Private Equity; Corporate Brand; Combine Business; Brand Valuation (search for similar items in EconPapers)
Date: 2010
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-27501-0_11
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DOI: 10.1057/9780230275010_11
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