The median trademark royalty rate for exhibition and convention brands is 7.5% of revenue and a 25% share of enterprise value, according to a new analysis from Markables. The analysis covers 17 brands of exhibitions and conventions from 11 countries. The sample includes national and international trade shows and conferences for various types of professional audiences, such as one of the largest fashion trade shows in Asia. Not surprisingly, brand is an important value driver for such businesses, as well as customer databases. Other assets are of minor importance. Prices paid for such businesses are quite high, with a median multiple of 2.4x revenues. It is worth noting that remaining useful life is finite for all 17 brands, with an average of 16 years.
This information is gleaned from the Markables database of over 5,000 trademark valuations published in financial reporting documents of listed companies from all over the world. The database reports value solely for the use of trademarks (not bundled with other rights).
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