Decide on the mode of payment cash or stock, and if cash, arrange for financing debt. The sponsor provides money, goods, services or knowhow. Your budget has been cut and you need to optimize your partnership portfolio. She has held academic positions at thunderbird, school of global management in the u. At the taking the guesswork out of sponsorship workshop october 19, ottawa or the sponsorship boot camp october 24, toronto, you will learn the basics behind the successful valuation of sponsor properties and how you can eliminate much of the guesswork. It appears that the challenges in sponsorship evaluation and measurement are better understood today than ever before. Procedia social and behavioral sciences 109 2014 9 a 924 18770428 2014 the authors. Taking the guesswork out of sponsorship pricing the bottom line.
The companys consulting services team focuses on sponsorship architecture and management, packaging and asset optimization, along with valuation, measurement, targeting and prospecting. While every property defines adding value differently, every definition largely boils down to one common theme. Its not too late to register for these useful workshops. Pdf on jan 1, 2011, christoph breuer and others published sponsorship valuation find, read and cite all the research you need on researchgate. Financial sponsors are companies that engage in privateequity or venturecapital. Why sponsorship valuations inspire confidence the bottom line. May 31, 2018 a sponsorship valuation is an assessment of assets in order to determine the true worth of a sponsorship package. Equally important, brands or potential sponsors of a property may, too, be curious or confused about sponsorship valuations. Theres no escaping that numbers play a part in valuing an asset. The significance of sponsorship as a marketing tool in sport. In exchange, the sponsored party individual, event or organisation offers rights and associations that the sponsor utilizes. Access to new and affordable tools have leveled the playing field for datadriven sponsorships.
Determining the value of your sponsorship inventory and defining your own sponsorship valuation formula is without a doubt the thing that strikes fear into the hearts of even the toughest sponsorship sales pro. In a statutory merger, one company is merged into another. Mergers can be categorized by the form of integration. So to approach a company you should approach one of them. A valuation should yield a solid and accurate understanding of the fair market value of sponsorship assets, individually and collectively. Choose the accounting method for the merger acquisition. The results show that publicity and sponsorship has a positive relationship with brand equity. Sponsorship advances top talent, so why arent we using it. Beerli and santana 1999 analyzed numerous methods that. Lagae defines sponsorship as a business agreement between two parties. Value is the intrinsic worth of a sponsorship property or package. Building brands through event sponsorships university of st.
This pricing structure is a guideline only and not to be deemed as applicable to all properties at all times. So how do you actually figure out how to value a sponsorship asset. Digital sponsorship benefits delivering real value. Fighting corruption in sport sponsorship and hospitality. Pdf corporate business valuation for mergers and acquisitions. Nearly 200 leading sponsors endorse ieg valuation service. Most sponsorship deals are largely made for the associated intangibles access to the owners box on opening day, meetandgreets with famous pros, free tickets to the grammy awards.
I get more questions about sponsorship pricing than any other aspect of sponsorship. The impact of the effectiveness of sponsorship on image and. The objective of the business valuation certification training center is to make the entire process more objective in nature. Specifically, they are challenged by how they can provide value to sponsors through these assets and manage the increasing appetite of sponsors for access to them. How to calculate sponsorship value 5 steps eventbrite. Built with groundbreaking research, an optimized user experience and relevant data. Corporate business valuation for mergers and acquisitions article pdf available in international journal of strategic property management 20053.
Sponsorship valuation best practices sponsorship valuation is complicated and technicalbut it is an essential piece of the sponsorship puzzle. Oct, 2015 you are sitting at your desk wondering what to do with the tons of sponsorship requests pouring in. Note banners are recognized as advertising by users, not sponsorship and. Event organizers who take advantage will be able to unlock unique sponsorship opportunities. Sep 10, 2015 factors include identifying what your business goals are what you hope to get out of the sponsorship, what event or organization you choose to sponsor are you positioning yourself in front of the right people, and how involved you are willing to be working with the organizers to further your benefits. This post is meant to serve as one way to run a valuation. The future of sponsorships computer vision and ai insights. Elevent is the worlds first and most innovative sponsorship valuation software. The firms capabilities and experience in sponsorship inventory and valuation including specific example of municipalities and recreation and parks programs. Search 9 sponsorship acquisition jobs now available on, the worlds largest job site. We get more questions about this subject than any other topic on sponsorship. Thanks to the acquisition of nie wieder bohren gmbh, tesa once again expand.
That said, its not rocket science, either, and there are some definite rights and wrongs. Consultant services for asset inventory valuation for sponsorshipnaming rights table of contents page i table of contents part a information and instructions pages a1 to a5 1. Impact of sponsorship and publicity on brand equity. To find and win sponsors, todays organizer must dive deep into their event data. All acquisitions are made on the promise of benefits.
Thomson financialsdc, moodys manual of investments. This could be in terms of adding more revenue, more products, more customers, or even more leads. We provide detailed valuation and analytical work that enables our clients to have an accurate understanding of sponsorship opportunities and equips them for their marketing challenges. When valuing a company as a going concern, there are three main valuation methods used by industry practitioners. In part 1 of this 3 part series we looked at how to develop a sponsorship proposal that fits with the sponsors marketing plan today, in part 2, were going to look at how to deliver exceptional value in your sponsorship proposal by illustrating why your program is the very best marketing option for a potential sponsor. Once we have identified your audience and developed a huge pool of assets, we move on to a full valuation of those assets. Mastercard used its former world cup tie to create acquisition and.
Our research shows that most organizations rely on instinct, educated guess or simply pull figures out of the air to determine the asking price for their sponsorship properties. Adding sponsorship value properties need to go the extra mile to secure new partners and maintain longterm relationships. With more than 165,000 members in more than 163 countries and territories, at our events you can reach influential investment management practitioners and financial. Commercial and financial chronicle, september 11, 1958, vol. The good news is that sponsorship evaluation and measurement is a hot topic, with the synergy decisions white paper the latest piece of literature to put sponsorship valuation under the microscope. In fact, i would argue that it is the most important part of the technical side of sponsorship sales with relationship building being the most important part of the soft side of. The commonly used methods of valuation can be grouped into one of three general approaches, as follows. I wish there were an easy answer a magic wand i could wave that would make the right number appear out of thin air, but im afraid its just not that simple. Reach is the thing people look to first and most often.
The new rules of event sponsorships eventbrite us blog. Pham 1991 rejects survey methods entirely due to their inability to discern the. Heres why you have only 90 days to integrate an acquisition. Decide on the mode of payment cash or stock, and if cash, arrange for financing debt or equity.
In the third column, youll want to record the number of people the asset will reach. This acquisition of football rights is part of a media battle for. Value the target with the acquisition motive built in. Valuation methods three main approaches to value a business. Such things are not worthless, of course, but they should be bought with open eyes.
This is the most technical and challenging stage of the sponsorship process and we know it better than anyone. How to deliver exceptional value in your sponsorship proposal. Evaluating sponsorship proposals based on media values is just the beginning. When youre ready to launch your sponsorship campaign, make sure that your prospectus is easily accessible to your campaign targets. Oct 06, 2008 ieg sponsorship report raising the bar on sponsorship fulfillment reports as sponsors and properties have grown more sophisticated in their approach to the medium, many of the essential elements of sponsorship, from the sales process to negotiating strategies to valuation to benefits, have undergone major changes to meet demands. Aswath damodaran 3 steps involved in an acquisition valuation n step 1.
How to measure true sponsorship value a framework 07212014. The drivers of a successful corporate sponsorship and the. Sponsorship opportunities we partner with local societies, universities, and the investment industry to offer a wide range of insightful and engaging regional and global events. Sponsorship valuation tool the future of sponsorship. Conduct a highresolution valuation of prospective targets.
We use two tools to pursue this ambitious commitment. Further research should examine the role of public relations and advertisement in building brand equity. To accurately gauge the sponsorship value of any property, ieg accounts. The inventory valuation the following is the inventory asset pricing structure that the partnership group sponsorship specialists uses to establish fair market values for assets in an inventory. That is, that you either attach a pdf of your sponsorship or an html link to view the sponsorship prospectus on your website. These are the most common methods of valuation used in investment banking investment banking investment banking is the division of a bank or financial institution. When publicity and sponsorship is favorable, there is positive effect on brand equity. While the volume of research on corporate event sponsorships as a marketing tool has increased markedly. May 17, 2017 locating the price of your competitors sponsorship assets can be timeconsuming, but an accurate assessment of your sponsorships market value will ultimately help you unlock more revenue from sponsors. Valuation methods posted on november 18, 2016 july 23, 2017 by john kennedy generally, when valuing a company, there are two different ways to approach the valuation of the company. Bank bgz bnp paribas sa 212018 zwolanie zwyczajnego walnego zgromadzenia banku bgz bnp paribas s. The future of sponsorship valuation lies in having an advanced tool that allows you to know how much your assets are worth, whether your objectives will be met and how the partnership in question will fit with your audience. Taking the guesswork out of sponsorship pricing i f youve ever guessed at what your sponsorship packages are worth, then youre not alone.