Brand evaluation mandate in the context of a sale to an international group
Brand evaluation mandate carried out on behalf of an independent European company active in high-end leather goods, as part of its sale to an international group in the luxury sector.
Mandate description
The objective of the mission was to determine the fair economic value of the brand before the transaction, in order to support discussions on the overall acquisition price and on the distribution of value between tangible and intangible assets.
The analysis focused on the brand's reputation, its position in the competitive world and the strength of its identity with a loyal international clientele.
A perception study was conducted jointly with the marketing and financial departments to link perceived value to real economic performance, in a sector where image and attractiveness are essential drivers of growth.
Key issues
The major challenge of this mission lay in the balance to be found between the symbolic strength of a heritage brand and the financial rigor of an international sale transaction. The aim was to transform the intangible into the measurable, without altering what made the name and history of the house so unique.
Discussions between the seller and the purchaser required a neutral approach, in accordance with ISO 10668 and IVS 210 standards, making it possible to isolate brand value from global goodwill while maintaining consistency with the valuation of the company.
In a context where the emotion of the founder met the logic of integration of a large group, the evaluation of the brand served as a link between two economic cultures: that of craftsmanship and that of international rationalization.
Approach and results
The evaluation was based on several complementary approaches: a revenue approach based on the royalty method, a market-based approach inspired by transactional counterparts in the luxury sector, and a reconstructed costs approach, reconstructing historical investments in communication and brand development.
The report made it possible to establish a coherent and reasoned value range, validated by the advice of both parties, and to conclude a solid alignment between the intangible value and the final price of the transaction.
The transactions shown include those completed by, or with the involvement of, Hectelion team members in current or previous professional roles. They are presented for illustrative purposes only and do not imply exclusive responsibility by Hectelion.
Discover our TRACK RECORD
The transactions presented were carried out by, with the contribution of, or with the participation of members of the Hectelion team in the context of functions performed currently or previously.