Thursday, December 21, 2006

Managers leave money on the table when they ignore Brand Value

Brand Value represents a large part of the value of a company. In the case of a consumer goods or service business, it may exceed all other constitutents combined. In the case of a Business to Business company, it may be less important, but may still be well over 10-20% of the value. Yet, top management frequently does not act as though it is so critical. Some Private Equity firms now understand this well, paying a premium for a strong brand, and focusing on building the brand. However, most specialized turnaround management experts do not yet understand it, and have even less idea of how to manage it.

We fully expect this to change in the next few years. Managers will come to realize that a brand is valuable and can be made even more so.

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