Rate of Investments as a Parameter of the VIM Model for Appraising Trademarks of Unlisted Companies Cover Image

Rate of Investments as a Parameter of the VIM Model for Appraising Trademarks of Unlisted Companies
Rate of Investments as a Parameter of the VIM Model for Appraising Trademarks of Unlisted Companies

Author(s): Romana Čižinska, Tomáš Krabec
Subject(s): Business Economy / Management, Marketing / Advertising
Published by: Masarykova univerzita
Keywords: brand value; intangible assets; costs of branding; investments;
Summary/Abstract: The value of a trademark is based on its economic benefit to its owner or the economic entity owning/using the trademark. All methods of appraising the fair value of a brand are based on three approaches - comparability, cost and income approach. In appraising intangible assets of unlisted (private) companies operating in developing markets, appraisers have to face the problem of the lack of empirical data, or their low quality. This makes the application of standard appraising methodology disputable. Therefore we suggest the VIM (Verifiable Interdependent Model) model, which has been designed specifically for the conditions of use in this environment.