Market Approach
Glossary definition

Market Approach

The market, or sales comparison approach, measures value in comparison with transactions, for similar brands. This approach requires a detailed evaluation of the comparability of the two brands, considering factors such as the markets in which they operate, relative brand strength, legal protection, and the economic outlook at the times of the transactions. Account has to be taken of the fact that the price negotiated in a transaction may reflect strategic values and synergies that are not available to the present owner.

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