Brand Valuation - The New AVM Valuation Method

LIUC Papers 302, November 2016

28 Pages Posted: 7 Dec 2016

See all articles by Gian Maurizio Argenziano

Gian Maurizio Argenziano

Università Carlo Cattaneo (LIUC) - Banking & Finance

Date Written: November 3, 2016

Abstract

This research defines a new method, called "MVA", to determine the value of the brand and the "weight" that this value takes as part of the overall enterprise value. The need for a new method originates from the change occurred in the brand itself as result of the new marketing and communication techniques, associated with the instruments made available by the "digital revolution". Today's corporate strategies put brands, especially in their "advanced" versions, at the center of organizational and management processes, in order to reach (economic and social) objectives and to differentiate their offer. Typically, the brand valuation methods used in academic and professional practice do not distinguish between brand versions; so they are poorly suited to assess the latest and more traditional brand versions, whose management has also been conditioned by the change. This research starts from the definition of the brand in the current socio-economic context, it looks at what the brand has become today through its historical evolution and it identifies the distinctive features of the different "versions of brand" present on the market. The distinction between the versions of the brand is carried out based on a few basic concepts borrowed, with a limited depth, from the marketing and communications disciplines. Finally, this research provides some tools to recognize the brand version used by certain entities also through observation of their management and business organization. A synthesis of financial and economic/marketing factors, the new MVA brand evaluation methodology builds directly on the identification of the brand "version" to identify the brand value in the context of the overall company value, through a "market valuation" comparative process for same brand versions and comparable companies.

Keywords: Brand Valuation

JEL Classification: G32

Suggested Citation

Argenziano, Gian Maurizio, Brand Valuation - The New AVM Valuation Method (November 3, 2016). LIUC Papers 302, November 2016. Available at SSRN: https://ssrn.com/abstract=2876256

Gian Maurizio Argenziano (Contact Author)

Università Carlo Cattaneo (LIUC) - Banking & Finance ( email )

United States
+390331527265 (Phone)

HOME PAGE: http://www.liuc.it/

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