branding-valeur-entreprise

BRANDING & VALUE OF A COMPANY

2019/05/15

Regardless of the field of expertise or the size of a company, it is essential to adopt an effective and distinctive branding strategy. In addition to increasing the company’s reputation and better promoting its products and/or services, an optimized and up-to-date branding increases the company’s value. Moreover, from the perspective of selling a company, branding is a considerable asset that increases the value of the company for several reasons.

 

First, it must be taken into consideration that the brand is often the main capital of a company. When the brand enjoys a high level of notoriety and is strongly established in its market, the company is much more efficient. Indeed, customer support is a significant strength that ensures the success of the brand’s daily activities and future projects. This customer support is largely achieved through an effective branding strategy! Apple, for example, knows full well that the launch of each of its new products will be a success. The company can count on a credible and highly developed brand image to boost its sales, increase its reputation and contribute to its influence. As a result, a company with a strong and memorable brand image is much more attractive to potential buyers.

 

In addition, in the case of a business sale, it has much more value if the company has a strong and distinctive brand image, as it will not be necessary for buyers to invest funds in the evolution of branding. The branding status of a company therefore plays a major role in the context of a takeover, or even a merger with another company: this represents a real added value. When selling a business, it is possible to compare branding to real estate. For example, a modern and completely renovated home has much more value on the market than a property that requires major renovation investments.  This house will therefore inevitably be sold at a higher price. The same applies to a company with a professional and refreshed branding.

 

In short, branding represents a considerable and essential added value for a company. In addition to increasing awareness, performance and sales, an effective brand image greatly increases a company’s value. As owners who renovate their homes to maintain it and even increase its value, entrepreneurs have an interest in investing in creating an effective brand image for their business.