The Client

The Company was founded in the 1940s as a manufacturer of consumer durables growing to employ more than 1,000 employees. The Company is known to be a market-leading brand and as an innovator in its market. It generates more than $150m in revenue from retail partnerships, licensees, and online sales, direct to consumers.

The Company’s manufacturing and supply chains had been interrupted by Covid-19, and its stores and manufacturing facilities had been forced to close due to the economic shutdown. As a result, the Company was relying on cash reserves to meet ongoing costs and with uncertainty around consumer behaviour, Management had concerns that when production recommenced, there may not be the same level of demand for the brands in a post-pandemic economy.

The Assignment

We were instructed by the Company to provide a distressed valuation of its IP portfolio. The Company was planning to enter a bankruptcy process and wanted to understand the likely value of its IP from an accelerated IP sale to inform discussions with its advisors and stakeholders.

Our Approach

Utilizing our Metisology® approach, we identified the IP assets that were critical to the Company’s operations and underpinned its material revenue streams. The Company’s corporate brand was a significant contributor to revenue, and we found evidence that it was acknowledged by many consumers as a premium brand in its sector, delivering high quality products.

We also identified that the Company had developed numerous product brands at different price points, tailored to different customer preferences and demand. These brands allowed the Company to operate at price points across product lines, thus securing a majority market share, and were therefore integral to ensuring the Company retained its position as a market leader.

The Outcome

We provided the Company with a downside valuation that reflected the likely recoverable value of its IP portfolio should the IP have to be sold in bankruptcy. This report was relied upon by the Company, its advisors, and creditors in restructuring discussions. It was subsequently relied on by a lender who provided additional liquidity through stretch-lending secured against this valuable brand, enabling this established manufacturer to restructure and continue trading.

IP Assets Valued: Brands, Trade Marks, Designs, Key Supplier Relationships, Patents, Software, Licenses, Database, Website & Domains