Brand audits and trademark valuation: the importance of intangible assets
As the so-called ‘knowledge economy’ becomes increasingly crucial to Western economies, there is a growing need to secure and measure the value of knowledge for its own sake. Formulating a strategic branding (brand management) policy is critical here, but you also need to be able to call upon the appropriate technological means to measure (audit), value and to exploit that knowledge.
Determining the value of an organisation
How do you know the value of your organisation? To gain this insight it is essential to regularly perform audits and/or valuations. These days, the value of your organisation cannot only be based on directly measurable tangible and fixed assets (such as bricks and mortar), instead, the value of your organisation will, to a great extent, be determined by intangible assets, including goodwill. Consider, for example, the value of your brands, products, trade names or revenue from your licensing programmes. It is precisely this kind of value that is of paramount importance during takeovers, mergers and joint ventures.
Evaluation of own efforts
Conducting an audit or valuation is not only intended to determine the value of intangible assets. An audit is also an important means of evaluating your own efforts. Investments in Intellectual Property must be profitable and efforts made must, of course, be measured. Novagraaf uses a structured audit methodology in order to assess value and effectiveness, covering:
- All elements of Intellectual Property within the organisation (including patents, trademarks, copyrights, etc);
- The extent to which you infringe someone else’s Intellectual Property rights;
- The ownership of the Intellectual Property;
- Any deficiencies that limit the protection of Intellectual Property; and
- Intellectual Property that is not recorded or is overprotected.
But, there are other reasons for performing an audit. These include, for example:
- The purchase and/or sale of (individual) business units (due diligence);
- Setting up a licensing programme;
- A substantial change in legislation (eg, IFRS and SOX);
- An initial public offering; or
- The desire to centralise your assets.
Would you like to know more about brand audits and trademark valuation?
Performing an audit or valuation provides insight and must be an important facet of your business strategy. Novagraaf has the knowledge and expertise to assist you in all fields. Please feel free to contact one of our consultants to discuss the strategic value of an audit using the contact form at the right top of this page.