In the new economy where value drivers are shifting from tangible to intangibles resources, brands are the most familiar asset. They are well known by consumers, perceived as a critical component of enterprise value and often motivate large mergers and acquisitions. Yet, brands are a complex intangible asset, and their valuation is a difficult task requiring a variety of expertise: legal, economic, financial, sector-specific and marketing.
Using rigorous methodologies, an analysis of the world of the new economy and an inquiry into the limits of modern valuation technics, this book offers empirical and theoretical background to the key issue of brand valuation. It provides answers to the many questions that arise when attempting to value a brand: How to understand the origin of brand value? How to assess its value objectively? Why valuations of some brands by consulting firms differ so widely? How to understand that some brands are valued millions of euros when the companies that own them are losing money?
Brand Valuation explains the economics and finance factors explaining the value and volatility of brands and presents the most commonly used methodologies to value brands such as the cost methods, the excess earnings approach, the relief-from-royalty method or the excess revenue approach. The methodologies covered are illustrated with numerous examples allowing the reader to grasp the advantages and limits of each valuation techniques. The book presents the relevant context of brand valuation including the applicable existing accounting and valuation standards and also discusses the models developed by consulting firms.
'The book successfully answers the questions it has raised in its Introduction. It provides a comprehensive overview of the current knowledge and methods necessary to estimate the value of brands. The book flows very well with regard to its structure and contents. Noteworthy are the many examples and case studies that make this rather "intangible topic" very "tangible."
Alexander Himme, Kühne Logistics University, Hamburg, Germany
Über den Autor Paugam Luc
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Luc Paugam, PhD, is Associate Professor in Accounting and Management Control at HEC Paris, where he teaches financial accounting and reporting in undergraduate, graduate (MSc), MBA and EMBA programs. Prior to joining HEC Paris, Luc has been a consultant in corporate finance, an associate professor at ESSEC Business School and a visiting scholar at the University of Houston. Luc is an associate editor of European Accounting Review, an editorial board member of Accounting and Business Research, Accounting in Europe and a member of CFA Society France. Luc?s research focuses on issues surrounding financial reporting of M&As (goodwill, intangible assets), corporate whistleblowing, ESG and bank reporting. He has published in several academic journals including Abacus, Accounting, Organizations & Society, Comptabilit? ? Contr?le ? Audit, Contemporary Accounting Research, European Accounting Review, Journal of Accounting and Public Policy, Journal of Business Law, Journal of Business Finance & Accounting and Strategic Management Journal.Herv? Stolowy, PhD, is Professor of Accounting at HEC Paris where he teaches financial accounting and reporting in undergraduate, graduate (MSc), MBA and EMBA programs. Herv? is past Editor of European Accounting Review and an editorial board member of Contemporary Accounting Research and the Journal of International Business Studies. He is a certified ?expert comptable? (French equivalent of a chartered accountant or certified public accountant). Herv??s research and teaching interests span financial and international accounting and focus more specifically on accounting fraud, accounts manipulation, whistleblowers, activist short sellers, non-financial information, ESG reporting and performance, intangibles, and international accounting harmonization. He has published 10 books, chapters in 15 collective works and published over 90 articles in academic and applied journals, including Abacus, Accounting, Auditing & Accountability Journal, Accounting, Organizations & Society, Comptabilit? ? Contr?le ? Audit, Contemporary Accounting Research, European Accounting Review, The International Journal of Accounting, Issues in Accounting Education, Journal of Accounting and Public Policy, Journal of Business Law, Journal of International Business Studies and Strategic Management Journal.Yuan Ding, PhD, is Cathay Capital Chair Professor in Accounting at CEIBS (China Europe International Business School) and was its Vice President and Dean from 2015 to 2023. Prior to joining CEIBS, he was a tenured faculty member at HEC Paris, France. Yuan lectures in financial accounting, financial statement analysis, international accounting, corporate governance and mergers/acquisitions in Masters of Science in Management, MBA, EMBA and PhD programs in Europe and China. He has had research papers published in several academic journals and in leading French academic journals, including Accounting, Organizations & Society, European Accounting Review, Journal of Accounting and Public Policy, Journal of Business Venturing, Journal of International Business Studies and Journal of Business Ethics.
