$136 million Gibson transaction reflects power of trademarks: Bank Of America secured loans against Gibson, Epiphone, and Baldwin names.(INDUSTRY FOREFRONT)

Music Trades, November, 2005

TRADEMARKS AND BRAND names don't appear on balance sheets, but they are increasingly viewed as critical assets, especially now that manufacturing facilities are shifting from country to country at an accelerating pace. But how do you go about placing a value on an internationally recognized trade-name? Bank of America's Business Capital division recently made the effort when it provided a $136.2 million credit facility to the Gibson Guitar Corporation.

Ferrell Coppedge, president of the Southeast/Atlantic Division of Band of America Business Capital, explained, Gibson's "trade ...