Reasons of the Trademark Valuation

Frequently, trademarks are valued for a number of reasons, like as

• To establish price or contract conditions for business dealings such buys, sales, licences, or contributions to joint ventures or co-branding projects
• To assist in the creation and implementation of specific business or individual tax strategies, or to abide by tax laws relating to corporate re organizations, trust and estate concerns, and intercompany transactions.
• To permit the use of the trademark as collateral for debt financing or to draw in equity investment in order to raise funds.
• Assist with a variety of bankruptcy-related problems, such as those involving avoidable preferences, fraudulent transfers and conveyances, determining whether a participant is financially stable or not, dealing with adequate protection, among other things, the possible use of trademarks as security for debtor-in-possession financing.
• To determine the extent of damages in some business disputes when a trademark's value has been lost, decreased, or is in dispute between the parties.
• Putting values on balance sheets for companies, especially when a purchase price allocation is involved with a merger or acquisition of a company