“If this business were split up, I would give you the land and bricks and
mortar, and I would take the brands and trade marks, and I would fare better than you.”
— John Stuart, Chairman of Quaker (ca. 1900)
In the age of high business growth Companies prefer both organic and
inorganic path for expanding their businesses. Either to enhance their
product offerings or to target newer markets , companies are preferring
route of mergers and acquisitions.
During mergers and acquisitions one company buy target company. This
buy out consist of two parts. One is the assets of the targets companies,
which are reflected in book value, while there is another component
that need be assessed is that is intangible, often referred as brand
equity. This intangible part at times is of equal weightage as that of
tangible assets part.
During Mergers and Acquisition how this is to be valued becomes
utmost important. The objective of this paper is to understand the
factors that determine the value of target firms’ brands in the context of
mergers and acquisitions.
In this paper we are developing a framework for measuring brand equity
in case of Mergers and Acquisitions. This framework can be applied in
all those cases where brand equity is comprised of all similar assets as
assumed in this paper.
Key Terms: Brand Equity, Valuation, Merger and Acquisitions
This is abstract of the Term paper submitted for Brand Management subject by the Author at Department of Management Studies, IIT Delhi. This frame work has been developed by the Author under supervison of Dr Mahim Sagar, Astt professor, DMS, IIT Delhi. 
