Brand on the balance sheet: turning goodwill into a tangible asset for a more profitable exit

For decades, the value of a company’s brand was often hidden within a single line item on the balance sheet: ‘goodwill’. It was seen as an abstract, intangible concept, too subjective to stand on its own.

Today, that view is changing. We believe it's time to stop treating brand as an abstract asset and start building it as a financial one. Here, we explore how, in proactively managing your brand as the strategic tool it should be recognised as, you can not only unify your portfolio, but also secure a tangible asset that drives significant value and commands a higher multiple at exit.

From goodwill to a tangible asset

The concept of brand value is about the qualities and perceptions that give a brand its worth and differentiate it from competitors. It’s what leads consumers to pay a premium for a product or service beyond its functional purpose. While consumers may deny paying for a name, studies have shown they perceive a clear monetary value for brands.

For private equity, this presents both a challenge and a massive opportunity. The challenge lies in its intangible nature – a brand's value is dependent on people's perceptions, which can be difficult to measure and easily destroyed. And this is why traditional valuation processes have struggled and remain contentious.

Our strategy: a proven approach to building brand value

At The Bigger Boat, we specialise in helping private equity firms and their portfolio companies navigate the complexities of strategic branding. Our vision is to be the only integrated agency renowned for creating investment-attracting brands that drive exponential growth and deliver maximum ROI. We offer a proven approach to creating and building brand value that’s reflected in your financials. Our continuously honed process enables us to turn the intangible into a quantifiable asset that can be leveraged for growth.

We know how to structure brands for growth and organise multiple brands so they become part of one cohesive entity. This creates a unified identity, yes, but the best part? Potential buyers perceive this as less risky and more valuable, making the business more attractive overall.

The brand toolkit

Our services are designed to provide a comprehensive brand strategy and a future-proof brand architecture. This ensures your brand is not only strategically sound but also has a tangible, visual toolkit for consistent application, which is crucial for maintaining its value over time.

In today’s market, where perception directly impacts valuation, treating brand as a strategic, financial asset is no longer optional – it’s essential. As private equity firms look to maximise value and achieve profitable exits, integrating brand into the balance sheet becomes a competitive advantage, not just a creative endeavour.

A strong brand is no longer a ‘soft’ issue. It’s a tangible asset that, when handled correctly, can unlock hidden growth potential, accelerate organic expansion, and secure a significantly higher exit multiple. Let's work together to make your next investment not just bigger, but truly better positioned for a successful and highly profitable exit. Talk to our experts today.