30 / August 2013

Can a valuation analyst separate out a ‘brand’ for valuation in a business combination?

Posted in: Intellectual Property News Written by: Randy
Categories: intangibles intellectual property purchase price allocation trade secrets trademark
Tags: brand value business combinations fair value accounting financial reporting for IP IP valuation research purchase price allocation trade dress trademark value

Marketing-related intangible assets are those assets used in the marketing or promotion of products or services and/or in the establishment of a brand. The ktMINE database of licenses and royalty rates lists marketing intangibles as

Trademarks

Tradenames

Trade dress

Copyrights

Service marks

Logos

Benchmarking Identifiable Intangibles and their Useful Lives in Business Combinations reports the terms “brand” and “brand name” often are used as synonyms for trademarks and trade names. The FASB does not preclude an analyst from recog­nizing a brand as a single marketing-related intangible asset representing a group of complementary intangible assets if the assets that make up that group have similar useful lives.

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