Brands may need to be valued for a variety of reasons; some of them are listed below:

• Sale of intangibles

• Purchase price allocation

• Impairment

• Collateral security

• Economic damages/lost profits related to infringement, breach of contract, or other commercial litigation

• Financial Reporting

When valuing a brand, it is particularly important "for whom" that value is being determined for. The value of a particular brand is not the same for the company that owns the brand as for a company with a competing brand or for another company operating in the industry with a brand that does not compete directly with it.

Brand valuation has been by far used for many purposes by companies.

1. Mergers and Acquisitions: Usually, a company or an organization does not pay the book value while acquiring another business entity. Now the difference between the paid acquisition price and book value is known as Goodwill. Goodwill can be defined as the value of a business entity which is not directly attributable to its tangible assets and liabilities. Estimating the financial value using brand valuation of a brand helps us to determine the premium over book value that a buyer should be paying.

2. Licensing: One of the approaches to take advantage of the value of a solid brand is by broadening or permitting the brand. It is feasible for both the licensor and the licensee to profit financially from an authorizing course of action. The licensor profits by another wellspring of income that requires minimal capital speculation. The licensee benefits by having a lower channel, publicizing and client obtaining costs

3. Financing: While companies don't convey marks on their monetary records as long-term resources, money related markets perceive the commitment brands have on investor esteem. Organizations with solid brands consistently acquire preferable budgetary terms over organizations with poor brands. The higher the estimation of the brand through brand valuation, the better the terms.

4. Brand Reviews: Usually, brand investment reviews entail the comparison, across brands and against competitors of hard measures, such as sales and market share, and soft measures, such as reputation and awareness. For some brands, it is also important to determine financial value. Brand valuations allow companies to gauge their return on brand investment and to develop appropriate investment strategies across a portfolio of brands.

5. Budget Allocations: The marketing mix is utilized by advertisers who must settle on choices about the assignment of spending plan and assets. Organizations can now more precisely gauge the blend of promoting vehicles required to expand both spending proficiency and advertising viability. For a few organizations, brand valuations are a basic component of the marketing mix.

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