Question
Company A, a designer of running shoes, is a recognized brand in the marketplace. In a competitive bidding process, Company A acquires its top competitor,
Company A, a designer of running shoes, is a recognized brand in the marketplace. In a competitive bidding process, Company A acquires its top competitor, Company B, which also designs a widely recognized running shoe brand. Other bidders were interested in using Company Bs brand name to expand their market share. While Company A intends to use many of Company Bs designs, it will immediately phase out the use of Company Bs brand name. Therefore, Company A would like to assign a very small value to the Company B brand name. Is this ok? Does it matter if Company A would never sell the brand name to protect its competitive position?
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