Sources: Brand Finance

Generated using Rose AI

"Brand Finance's Royalty Relief Methodology is based on the notion that a brand-holding company owns the brand and licenses it to an operating company. The notional price paid by the operating company to the brand company is expressed as a royalty rate. The NPV (net present value) of all forecast royalties represents the value of the brand to the business. This method is based on commercial practice in the real world. It involves esti-mating likely future sales, applying an appropriate royalty rate to them and then discounting estimated future, post-tax royalties, to arrive at a NPV. The steps in the Royalty Relief brand valuation process are as follows:
− obtain brand specific financial and revenue data,
− model the market to identify market demand and the position of individual brands in the context of market competitors,
− establish the notional royalty rate for each brand"