After a long-term downward trend, brands seem to be back in the focus of M&A investors, according to a new report. The year 2015 could mark a turning point,” says the report, MARKABLES Global Top20 Brands. Some highlights of 2015:
- The top two most expensive brand acquisitions of all times were transacted: Kraft Foods (by Heinz) and Newport (by Reynolds American);
- The average value of the Top20 brands increased to $5.6 billion, up from $2.1 billion in 2014;
- Top20 brands account for 41% of the value of the enterprises to which they belong, up from 34% last year; and
- The year 2016 could be an even better year for brands in M&A, with some landmark acquisitions (SABMiller, Time Warner, LinkedIn, Monsanto, Chubb, Starwood Hotels, and other).
The report’s data come from public-company financial statements, and the amounts reflect what an acquirer or investor is willing to pay for a brand. Real transactions of brands give a unique insight into the understanding of what drives value.
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