An organization’s brand is one of its most important and noticeable assets. Despite their importance, most brands operate off the balance sheet. This contrasts physical assets like plant and equipment, which, although significantly less valuable, undergo periodic appraisal and thorough documentation in financial statements.
Many investors, managers, boards, and management teams think brands can’t be valued at all. That’s not right. Brands can be valued, but the methods and considerations differ greatly from valuing fixed assets.
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