A market-leading, UK-headquartered, manufacturer and provider of industrial tools and equipment to the building, equine and gardening industries, with a 40-year track record. The client offers its recognizable own-branded products to established wholesalers and retailers, generating annual revenues of circa £9m.
The client acknowledged that their corporate brand plays a pivotal role in establishing and maintaining their competitive edge. The client has adopted a brand strategy, where its products are recognized for their exceptional product quality and outstanding post-sales support; recognition that has allowed them to both generate high levels of repeat revenue and command premium pricing. Management needed to understand the value of the brand assets currently vesting in the business, for the purpose of transferring these assets to a NewCo based in Middle East. The NewCo would be commercializing the IP in the region and would license the IP assets to the client’s other trading entities.
Utilizing our Metisology® approach, we were able to determine which brand-related assets were underpinning the client’s financially material revenue streams. We identified that the client’s corporate brand had secured a reputation in the market as a high-quality provider of industrial tools and equipment, which had earned the trust of many reputable and established wholesalers and retailers. The resilience of the Company’s supply chain and critical supplier relationships enabled strong consumer demand to be met even during periods of supply chain pressures such as the Covid-19 pandemic, Brexit, and the Ukraine conflict, protecting the brand’s reputation as a trusted supplier in its market.
We conducted a brand valuation using a fair value approach, incorporating our proprietary Indicator Scorecard to evaluate the brand positioning within its target market. In addition, we evaluated the critical factors influencing industry growth, the key drivers of demand and the client’s strategy for addressing that market demand and achieving its financial projections.
We delivered a reliable and defensible brand valuation to inform both the transfer of its brand-related IP assets to the NewCo and the subsequent inter-company licensing agreement.
IP Assets Valued: Brand & related IP assets
