Brand evaluation mandate as part of an internal reorganization
Brand valuation mandate carried out on behalf of a French agri-food group, as part of a legal and accounting reorganization of its subsidiaries.
Mandate description
The objective of the mission was to determine the economic value of several brands owned by the group, in order to support an intra-group transfer in accordance with accounting, fiscal and regulatory requirements.
The challenge was to ensure consistency between the value attributed to each brand and the profitability of the corresponding product lines, in a context where the highly diversified brand portfolio was the main vector of recognition among consumers.
Key issues
The difficulty lay in the need to articulate economic logic with fiscal imperatives, without betraying operational reality. It was a balancing mission: to find the right value, neither overestimated nor excessively careful, while ensuring compliance with ISO 10668 standards and the OECD's full competition principles.
Each brand had its own history, its own margins and its regional dynamics. Understanding these differences and translating them financially was an exercise in precision.
The mandate also had an organizational scope: it aimed to structure centralized brand management, in order to facilitate the traceability of internal royalty flows and the transparency of value flows between group entities.
Approach and results
The assessment was based on the royalty method, with rates determined from sectoral comparators from international databases.
A complementary approach through reconstruction costs made it possible to assess the reproducibility of the brand and to anchor the results in a tangible economic perspective.
The final report served as a reference for setting intragroup fees, strengthening the legal certainty and financial coherence of the group at European level.
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.
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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.