Company-Based Brand-Equity

The brand is considered a financial asset by companies. This is very clear in mergers and acquisitions, where the brand can be a significant component of the sale price. Since 2005, it is also possible in French accounting to enroll purchased companies in the balance sheet (i.e. the brand « LU » purchased by « Kraft Jacob Suchard ») (see IFRS).

Beyond the financial asset, the brand is a symbolic element of the organization that is able to bring meaning and understanding. When the brand is properly mobilized by managers in favor of business strategy, then it can be a tool to recruit, educate and motivate employees.