Monday, September 10, 2007

Sstrong brands help in differentiating products in the market

These are days when mergers and acquisitions (M&A) are globally becoming important paths to stronger corporate growth. Indian corporates too are involved in big-ticket deals, as evident from the fact that the Indian economy broke into the league of top 10 markets globally for M&As, in the first quarter of 2007.

In these transactions, rarely does a company pay book value to acquire another business entity. The difference between book value and the actual acquisition price paid is because of intangible assets of which brand is an important one.

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