The Client

A large international coffee chain with a 30-year track record and operations throughout Europe, the USA and the Middle East. Previously listed on London Stock Exchange, the Group had grown organically and more recently through strategic and opportunistic acquisitions. This enabled rapid expansion of its operations, however it also resulted in an extremely complex group structure. The Group operated from traditional bricks & mortar premises, many in prime retail locations and when the economic shutdown occurred in 2020, it was forced to restructure.

The Assignment

We were introduced by Interpath and engaged to provide IP valuation advice to the Group to assist in the discussions with landlords, lenders and creditors. We provided our IP valuation on the likely recovery value of the IP from an accelerated M&A scenario.

Our Approach

Utilizing our Metisology® approach, we identified an extensive portfolio of IP assets that the Group owned, some of which had been created and others acquired during M&A, but much of which was being shared informally across Group entities, which made determining value much more complex.

This internationally-renowned coffee brand had received significant exposure in its 30 years of trading backed by a portfolio of almost 150 trade marks registered in commercially relevant territories worldwide. We discovered a customer loyalty program and software app and found evidence that these IP assets were contributing significantly to recurring revenues. The app also collected valuable customer data, which was used by the Company for direct marketing activities during the shutdown.

The Outcome

We delivered our valuation opinion on an OLV (orderly liquidation value) basis to represent a likely recoverable value of the IP if the Company had to sell in an accelerated M&A scenario. Our analysis demonstrated that these specific IP assets, in this sector, generated a significantly higher recovery valuation in-situ, delivering a higher-than-average valuation multiple, beyond the ex-situ bankruptcy valuation.

Our report highlighted the key factors which in our opinion were driving cashflows, including features of the IP assets which allowed them to engage with customers, retain loyalty, and bring customers back through their doors.
Our valuations were relied on by the Company and its advisers to explore a number of reorganization strategies.

IP Assets Valued – Brand and Reputation, Trademarks, Website & Domain, Software App Content, Customer Loyalty Database, Key Organizational Knowledge