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Riddle of the brands: the secret formula of kudos

The point is that there are two elements here. Brand value added in terms of the relative uplift in profits on a given transaction (Slaughters will play very highly here) and total brand value, which is a multiple of the first quantity and the volume of business done. i.e. Rolls Royce probably adds a significant premium per car sold, but the VW badge adds (less) value to many more cars and so in aggregate is worth less. You can absolutely include Slaughters and DLA in the same system if you include both these rankings and make some sense of it. To be honest, though, if I were buying a legal business I would get a pretty good idea of the former variable from the profit margin; the latter from overall profit, and benchmark against previous transactions where these figures will be known in setting a price, adjusting for the riskiness of the business in terms of relative partner/client turnover rather than starting with some exotic brand value figure, for which there is no historical data in the sector.

2-Apr-2012

2:03 pm