Often, the most revealing question is: What would the business be worth if it could no longer retain or use the brand?
We believe a trademark should be treated as a commercial asset, not merely a registration certificate. If losing the brand would damage revenue, customer loyalty, reputation or the ability to continue trading, it may represent a substantial part of the business’s value. We have also seen unclear ownership, inadequate territorial protection and weak evidence of use delay transactions or reduce buyer confidence.
A brand and a trademark are connected but not identical. The brand includes reputation, recognition and goodwill. The trademark provides legal rights that help the business retain, protect, license and sell important elements of that brand. Relevant factors include income and profit, recognition, replacement cost, territorial coverage, distinctiveness, enforceability, ownership history, genuine use, licensing opportunities and existing disputes.
TMH first helps ensure that the trademark registrations, ownership and supporting records are in order. We can then introduce qualified business valuation specialists and chartered professionals who prepare independent company valuations and supporting financial evidence. Larger transactions may require major accountancy firms such as PwC, KPMG or EY, but that level of cost is not always proportionate for an SME. The appropriate specialist and assurance level will depend on the transaction and the buyer’s requirements.
This gives the client credible evidence of value without automatically incurring top tier accountancy costs, and helps present a cleaner, more defensible asset to a buyer, investor or lender.
For a practical example, read how Coca Cola uses trademarks to protect its brand and generate revenue.
To see where your own brand stands, start with a free trademark search, or book a Trademark Consultation and Audit for a closer look.
This answer is for information purposes only and does not constitute trademark advice or guidance.
