The Client

An international manufacturer and marketer in the sports industry with revenues of $500m and a rich 80-year history of prioritizing quality and design excellence. The Company commits $millions per annum to R&D, innovation and product development and to securing and protecting its market-leading brand.

The Assignment

Like many businesses, the Company’s investment in innovation and IP is lost within expenses in the P&L. The financial statements do not include any ‘value’ of these assets. The Company recognized that its brand was absolutely the key driver for securing its competitive advantage – it has built a market-leading power brand that is associated with innovation, premium quality, patent-backed technology-led products, all of which enables it to secure recurring revenues and command a price premium. The Company wanted to know what the brand was worth to confidently plan a corporate strategy around it.

Our Approach

We valued the brand on a fair value basis. Using our Metisology® approach we performed a deep dive into how the brand was developed, managed and protected and used our proprietary brand scorecard to benchmark the brand’s position in the market segment and the wider sports industry, to assess the Company’s marketing and advertising activities that supported both brand image and its routes to market.

We performed analysis on the sports industry and on the segments that provided the Company’s material revenues, to assess the key drivers of industry growth and the Company’s business strategy for achieving its financial forecasts.

The Outcome

We delivered a reliable brand valuation which the Company used to assess its return on investment to date, and to support its strategic decisions on R&D and marketing spend going forward.

Clearly seeing the benefit of understanding the value of their IP, the Company engaged us to perform a further two IP valuations on acquisitions made during the year as part of its expansion strategy.

IP Assets Valued: Technology-driven Brand & Brand Collateral.