When looking at consolidated balance sheets of the last decades, one thing becomes clearly visible: tangible assets are proportionately declining, while the share of intangible assets is increasing. On average, intangible assets contribute to more than half of the corporate value by now.
Within the group of intangible assets, brands are of particular importance. They fulfil important prerequisites necessary to take a leading role as asset during corporate financing. This special characteristic of brands is increasingly considered when structuring corporate financing. Besides generating additional liquidity, it enables the exposure of hidden reserves, the optimisation of the liability structure and the improvement of a company`s balance structure. This way, brand financing represents an innovative and relevant alternative within corporate financing.
What we offer
In the course of monetary brand valuation, we isolate the future cash flows a company can generate with the brand and therefore create the basis for collateral security concerning financing with the brand.
The valid valuation of the brand gives access to alternative forms of financing. As feasible financing solutions based on the brand, sale-and-lease-back of trademarks or financing through the capital market have emerged besides the classic credit protection. For this we provide you with our expert network made up of tax advisors, auditors and lawyers who can structure individual corporate financing that is adapted to your needs.
By isolating the brand performance and using the brand during corporate financing, it becomes a central company asset.
Brand financing is subject to and instrument of a strategic and value-based management. Besides direct effects, such as the generation of new capital, indirect effects as a result of uncovering hidden reserves also need to be considered.
Brand financing enables the design of equity. The increased balance sheet total and thus a better balance presentation strengthens credit standing and consequently improves interest terms.
Which financing model is useful and feasible for a company, needs to be decided by examining the individual and specific environment. However, one thing is certain: brand means security. And brand financing is both, security for the brand as well as through the brand.