Why is necessary to assess a brand?

Them companies must value their brands for many purposes. In the simplest cases, the reasons for the determination of a value for a brand may be:

1     
find a buyer for the brand;

2     
value the assets in the balance sheet;

3     
providing information to investors;

4.     
to use the brand as guarantee of a loan;

5.     
by reasons tax.

Potential buyers also tend to value brands from other companies before making an offer to buy the company or its assets. The valuation of the brand is a tool that is used in mergers and acquisitions, planning, negotiation of joint ventures, guaranteed loans, bankruptcy administration, budgets, new products and development of analysis of markets, evaluation of advertising agencies, relations with foreign investors and marketing communications.

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