Brand evaluation mandate in the context of a transaction involving a player in the bottled mineral water sector
Brand evaluation mandate conducted as part of a transaction involving an international group in the agri-food sector.
Mandate description
Brand evaluation mandate carried out on behalf of a European agri-food group, as part of a strategic operation relating to a company specialized in the production and distribution of bottled mineral water.
This mission followed a prior business valuation and aimed at isolate and estimate the economic value of the brand as a standalone intangible asset.
The objective of the evaluation was to determine the fair value of the brand as part of the transactional discussions, to identify intangible valorization levers, and to document the brand's contribution to the overall value of the business.
Key issues
The main challenges consisted of:
- Appreciate the Brand strength and its capacity to generate future economic flows;
- Measure the Fame bonus attached to an internationally recognized historical asset;
- Distinguish the value of intangible capital that of the operational performance of the company;
- and guarantee the methodological consistency between business and brand valuation, in accordance with international valuation standards (ISO 10668 and IVS 210).
The analysis integrated several complementary approaches:
- one complementary approach through historical costs and reconstruction costs, in order to assess the reproducibility of the intangible asset;
- one Income approach, estimating the value of the brand based on theoretical royalties saved;
- And, a Market approach, based on sectoral comparatives observed in transactions in brand assets in the beverage sector.
Approach and results
The evaluation made it possible to determine a consistent and justified value interval for the brand, taking into account its reputation, market share and international influence.
The findings highlighted the strong correlation between brand value and company economic performance, while underlining the significant contribution of premium image and positioning to global valuation.
This evaluation was used to technical reference as part of the transaction and strengthened the group's financial and strategic documentation.
The analysis also made it possible to formalize an internal value reporting structure, facilitating the periodic updating of brand value in consolidated financial statements.
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.