Brand evaluation mandate as part of a strategic fund raising

Mandate description

The objective of the mission was to determine the fair value of the brand as an autonomous intangible asset, in order to highlight its specific contribution to the overall value of the company.

This evaluation was part of a context of Fundraising, where the company sought to attract investors specializing in health and wellness products. The brand, well established on the Swiss and German markets, enjoyed a premium positioning based on naturalness, transparency and clinical effectiveness.

The mandate was to objectifying the marketing discourse through structured financial valuation, to make customer perception tangible, and to reinforce the credibility of the documentation presented to investors.

The analysis mobilized the departments marketing, management control and general management, in order to ensure consistency between the strategic plan, financial projections and the perceived strength of the brand in its niche market.

Key issues

The central challenge of the mission lay in the economic translation of an intangible asset deeply linked to consumer affect and trust.

The brand was the core of the business model, much more than just a commercial medium: it embodied the scientific and emotional promise of the company. It was therefore a question of linking this symbolic value to a rigorous financial logic, while respecting the principles of neutrality and transparency imposed by the market standard.

The assessment had to demonstrate to investors that the brand was not only a distinctive sign, but a strategic driver for margin generation, loyalty and sustainable growth.

The context of fundraising also made it essential to harmonization of financial assumptions, so that the value attributed to the brand fits naturally into the consolidated business plan.

Approach and results

The evaluation involved a comprehensive methodological combination:

• The revenue approach (royalties), based on the capitalization of the theoretical royalty flows that the company would have had to pay if it did not own the brand. This approach made it possible to isolate the portion of profitability directly attributable to the brand, taking into account the loyalty rate, the price premium and the distribution channels.
• The market approach, based on a panel of recent transactions in the dermocosmetics and natural care sector, in order to identify the valuation ratios applicable to brands with a comparable profile.
• The reconstructed costs approach, recounting the cumulative investments in clinical research, product design and brand communication, in order to consolidate the coherence between perceived value and historical effort.

The results made it possible to identify a economically justifiable value interval, in compliance with ISO 10668 and IVS 210 standards, while illustrating the correlation between brand reputation and the economic performance of the company.

Beyond the final figure, the report provided a strategic reading of intangible value: it allowed management to redefine its internal brand monitoring indicators, to identify unexploited valuation levers and to anchor the brand at the heart of the financial narrative presented to investors.

This mission also made it possible to make managers aware of the dynamic management of intangible assets, by encouraging them to follow the evolution of brand value over time, in the same way as that of material assets.