Protect Your Business Right Now
Do you know exactly how much your company, trademark, patent or equity interest in each of these is worth? If your answer is “no”, take a deep breath and don’t despair. You are not alone! In Brazil, approximately 98% of entrepreneurs do not know the value of their own business.
The simple fact that you are here, reading this text, already shows that you have the desire to become an exception to this worrying rule. Knowing how much a company, trademark or patent is worth is essential for each of your steps to be very well planned, ensuring a minimum of financial and legal security.
And how is this possible? Through a complex calculation, called Valuation.
This expression is well-known in the business world, but it is not always understood correctly. Therefore, having specialized professional support when determining the valuation of your company, trademark or patent is a more than intelligent measure. It is necessary!
So, follow below the presentation of our Valuation service, one of VILAGE’s most complete and efficient solutions.
What is Valuation?
Valuation is an English term that means “evaluation”. In the business context, it is a process that determines the economic value of an asset, be it a company, trademark, patent or other type of asset.
This activity seeks fair value based on the calculation of assets, liabilities, revenues and expenses, without disregarding other financial and operational indicators to arrive at an accurate result.
To help you understand better, in our Valuation process, all aspects of a business are thoroughly evaluated based on objective data, providing a clearer view of the fair value of this venture.
The importance of Valuation today
Considering the recent data that 98% of entrepreneurs do not know exactly how much their businesses are worth, one might think that valuation is not really necessary. But the reality of the global market shows exactly the opposite.
Without reliable information about any type of business, investors and owners of any asset often have different interpretations about the value of their shares and, invariably, discussions end up in court.
Therefore, nowadays, valuation has become an essential tool in the business scenario, which is increasingly competitive and demanding.
Valuation is very important precisely because it provides an accurate and well-founded assessment of the value of a business. This allows entrepreneurs, investors and managers to make more accurate decisions. Likewise, valuation helps to attract investments, negotiate mergers and acquisitions, and even define growth and expansion strategies.
In other words, valuation is an essential process in the business world and covers not only tangible assets, such as a company and its equipment and goods, but also intangible assets, such as trademarks and patents.
So, if you want to reduce risks and make the most of business opportunities, valuation is the safest way.
Company Valuation
Company valuation is essential to assess the value of a company. Regardless of the stage of your business, relying on this service from VILAGE will allow for more fluid and solid management.
With company valuation, you will have objective metrics that will be extremely useful in future situations or even to determine what should be done in the present.
Therefore, valuation assesses values and provides information for all business decisions, such as:
- Entry or exit of a partner
When a partner enters or leaves, it is essential to know the exact value of the share so that all parties involved are aware of what is being negotiated. This avoids conflicts and ensures that the price paid or received is fair in relation to market values. - Corporate division
In cases of corporate division, valuation helps determine the value of the assets and liabilities that will be shared between the partners. This makes it possible to have a more reliable and transparent division that reflects the real value of each part of the company. - Company mergers
In this type of operation, valuation is essential! How can you determine the terms of the merger without assessing the value of the companies involved? Our process analyzes everything and allows you to have reliable data, for example, on the proportion of share exchanges. - Buying or selling companies
With our valuation service, you can be assured of a solid basis of information for these types of negotiations. In addition to having a fair value for the company, our valuation provides greater confidence for all parties involved in the deal. - Raising funds
To attract investment or obtain financing, it is necessary to have an accurate valuation that demonstrates the value and growth potential of the company. Those who invest in and finance a business use this information to assess risks and opportunities. - Strategic decisions
Valuation also serves as a management tool. After all, it provides the current value of the company and identifies areas that need improvement based on metrics. Therefore, our valuation process can indicate ways to expand the company or explore new markets.
Main Valuation Methods
The methods used in valuation vary according to the objective of the assessment. Each type has a focus, respecting its premises. See below the main methods currently used.
- Discounted Cash Flow (DCF)
This is a widely used method that projects the company’s future cash flows and discounts them to their present value using a discount rate that reflects the associated risk. - Market Multiples
Compares the company with other similar companies that already have their market value established. To do this, it uses financial multiples, such as P/E (Price to Earnings), EV/EBITDA (Enterprise Value to Earnings Before Interest, Taxes, Depreciation and Amortization), among others. It is useful for obtaining a quick estimate based on market benchmarks. - Accounting Valuation Method (asset value)
It is based on the accounting values recorded in the company’s balance sheet, considering the value of assets and liabilities. This method is simpler.
It is worth noting that these are the main methods, not the only ones. And VILAGE analyzes the best strategy in a personalized way, meeting the specific needs of each client.
Trademark Valuation
Entering the sphere of intangible assets, VILAGE offers trademark valuation, a service as essential to the success of a business as the registration of the property itself with INPI (National Institute of Industrial Property).
As an intangible asset, a trademark represents a significant portion of a company’s total value. Unlike tangible assets such as real estate or equipment, a trademark’s value is entirely tied to market perception, customer loyalty, and public recognition.
Therefore, valuing a trademark is a complex and delicate process, which requires extensive technical knowledge and experience to assess the specificities of this type of asset.
What influences trademark value?
When talking about trademark valuation, it is necessary to take into account 3 factors that directly impact the evaluation:
- Trademark protection
Ensuring that the trademark is registered with the INPI and protected against misuse by third parties preserves its exclusivity and prevents losses, increasing consumer confidence and the value of the trademark. - Innovation
Introducing new products, services or improvements helps to keep the trademark relevant and competitive. Consequently, this attracts more customers and improves its value in the market. - Investment in marketing
The trademark can also be strengthened through marketing campaigns. This strategy usually increases recognition among consumers and investors.
Information gathered in trademark valuation
VILAGE has expertise in trademark valuation and assesses trademark value, providing reliable information for use in accounting situations (updating value after increasing net equity), legal situations (non-onerous guarantee in legal disputes), licensing or franchise processes, marketing management and guarantee in financial operations.
Our valuation service also helps managers or entrepreneurs understand the value and percentage of the trademark’s share in relation to the company’s total value, with a clear demonstration of the trademark’s impact and contribution to the sale of products and services.
Another important point is that our valuation examines how your trademark positions itself in relation to its competitors, considering factors such as market share, innovation and ability to adapt to changes in the segment. A strong competitive position can indicate a higher trademark value.
Patent Valuation
Patent valuation is another distinguishing feature of the services offered by VILAGE. With aspects very similar to those of a trademark, this asset also needs to have its economic value assessed, whether it is an invention patent or a utility model patent.
The process conducted by VILAGE provides a comprehensive and detailed overview to facilitate licensing, sale or investment negotiations. In other words, our assessment provides a solid basis for strategic decisions, such as raising funds and exploring market opportunities.
Information gathered in patent valuation
When seeking investment, partnerships or the development of an invention, it is necessary to have all the detailed information, in addition to ensuring the protection of this asset with registration with the INPI.
VILAGE makes all its experience in this segment available to assess the patent’s ability to generate future revenue. And how do we do this? Considering market demand, the applicability of the invention and the commercialization potential.
Our valuation process analyzes whether the patent can be licensed or used to create products and services that generate significant revenue over time, as well as the total value of the patent.
It is a true dive into the patent, seeking objective data from the first investments made in the development of the invention – including expenses with research, prototyping, testing and improvements. In this way, we account for everything that was invested and, keeping an eye on the metrics and projections, we reach the fair value of the patent.
When to use patent valuation
As we have described before, patent valuation is useful in several aspects, which go beyond simply determining the value of this asset.
This type of valuation is useful, for example, for the accounting recording of intangible assets. In practice, it allows patents to be valued and reflected correctly in the balance sheet.
With the value of patents defined, it becomes safer to calculate appropriate royalty rates in potential licensing agreements.
Another aspect in which VILAGE’s valuation contributes is in obtaining financing. For example, the patent can be used as collateral to obtain loans or financing. Valuation helps determine the value that can be used and gives more confidence to the operation.
Why choose VILAGE to do your valuation?
Nowadays, any difference you have in your business can be decisive for its success. Just look at the increasingly competitive business scenario that we are experiencing not only in Brazil, but all over the world.
Valuation is an ally for any business. It is essential to understand the value of your company, trademakr or patent in order to plan all the steps with greater confidence. After all, this will ensure an accurate and reliable assessment for strategic decision-making.
VILAGE is the partner that turns dreams into reality because it offers complete consultancy, with personalized support in all valuation processes, ensuring that each stage is conducted with maximum attention to detail.
And how can we guarantee this? Well, first of all, we highlight our highly experienced and qualified team, made up of experts who master the value assessments of companies, trademarks and patents.
In addition, we also use technological tools that allow for detailed and precise analysis, from data collection to interpretation of results.
VILAGE has decades of experience contributing to the success of companies in and outside Brazil. Our commitment is to provide a service that not only meets your expectations, but also offers valuable tips to boost the value of your asset.
With our consultancy, you can trust that each aspect of the valuation will be approached with rigor and commitment, ensuring an assessment that truly reflects the real value and potential of your business.
Ensure this security for your asset. Count on VILAGE!
Frequently Asked Questions
Valuation is the process that determines the fair value of a company, trademark or patent.
Doing a valuation of your asset is essential to have a clear view of its real value. This supports decision-making, such as selling or licensing.
The most common methods include Discounted Cash Flow (DCF), Market Multiples and Replacement Cost Valuation.
Trademark valuation measures the financial impact of the trademark, considering factors such as market recognition and consumer loyalty.
Patent valuation identifies the real value of an invention, which is essential for negotiating licenses, raising funds or selling the asset.
The cost varies depending on the complexity of the asset and the methodology used. Consult our team for an accurate estimate.
The deadline depends on the complexity of the asset, ranging from a few weeks to a few months. We evaluate each case individually.
The report must include a description of the asset, methodology applied, assumptions used, analysis of market factors, value estimate and detailed conclusions.
