Brand Valuation in Mexico for Sales and Licensing
A brand valuation in Mexico should support a specific business decision. You may be considering an asset sale, negotiating a licence or preparing an investment discussion. Before requesting a figure, define the rights to be assessed, the intended use of the report and the information available for the project.
At Ramírez Esteves, we provide legal advice and coordination of brand and intangible asset valuation projects in Mexico. The firm is based in Guadalajara and Zapopan; the scope of each project is agreed for the business and assets involved.
Define the purpose and territory
Explain who will use the report, the decision it needs to support and the relevant date. An international group should distinguish its Mexican rights from registrations and commercial arrangements in other countries. The asset, territory and assumptions need to be clear before the project is scoped.
WIPO’s guidance on IP valuation describes its relevance to sales, licensing and business negotiations. The report should state its assumptions and limitations so that the recipient can interpret the result in its intended context.
Preparing for a brand sale
Identify what the proposed sale would include. Are you considering one registration, a portfolio or additional business assets? Separate the registrations from the contracts and materials that would form part of the transaction.
For an initial proposal, describe the owner, the registrations and the purpose of the sale. Mention any approach from a potential buyer or expected negotiation date. You do not need to settle on a definitive asking price before requesting an assessment of the project.
Preparing for a licence and royalty discussion
A licensing project needs a different description: the proposed use, territory, products or services, duration and whether exclusivity is contemplated. The parties’ obligations and the commercial model also matter to the review.
WIPO distinguishes licensing from an assignment of ownership: a licence allows agreed use while the owner retains the asset. A royalty figure needs the context of the contemplated arrangement, rather than being treated as a universal percentage.
Explain what commercial information is available and how the brand would be used. The legal review of a licence and the valuation work can be coordinated, with their respective deliverables identified in the engagement.
Preparing for an investment discussion
State what role the brand plays in the transaction and who expects to rely on the report. The value of a particular brand is not automatically the value of the entire company.
Specify whether the work concerns one asset, a trademark portfolio or other intangibles. Identify how that scope connects with the investment decision. Any accounting, tax or other specialist requirements should be identified when defining the project, rather than assumed to be covered by every report.
Information for an initial proposal
Start with a general description covering:
- The brand and its owner.
- Available registration or file numbers and the countries involved.
- The purpose of the report and the requested timing.
- Products, services and the business model.
- Existing licences, use agreements or current negotiations.
- The availability of commercial and financial information.
Disclose any dispute over the rights so that the team can assess whether an intellectual property litigation review is also needed.
Discuss the scope before commissioning the work
In the first contact, a general description is sufficient. The necessary documents, responsibilities, deliverables and fees are then agreed for the project. Valuation work is available for businesses in Mexico; it is not restricted to Guadalajara. The territorial scope of the asset and report depends on the engagement.
Contact Ramírez Esteves and explain whether your objective is a sale, licence, investment or another business decision.