The Client, SIA, was carrying out an asset review for a lender who required “comfort” in relation to the value of critical IP assets in an award-winning, UK-based producer of pre-packaged bread products, with revenues close to £100m and operations dating back to the late 19th Century.
We were engaged to provide a Desktop IP Valuation on a highly accelerated basis by SIA (offering IP valuations delivered by Metis Partners). As part of a bank facility review, the lender wanted us to confirm the Company’s key IP assets and estimate their likely value in an insolvency scenario, in order to support stretch lending specifically secured against the brand related IP assets. The assignment was to be completed without access to Company Management.
We valued the IP assets on an Orderly Liquidation Value (OLV) basis. Using our Metisology® approach, we identified the key IP assets that vest within the Company, and the significant IP-related factors that would influence the value and future sale of the Company’s IP assets. Our Information Discovery process confirmed that the Company’s brand & related assets and its key organizational knowledge, were the most valuable IP assets owned and utilized by the Company.
Due to the accelerated nature of the assignment and limited access to Company information, it was important that we conducted extensive desktop research and analysis. We relied on both our experience of valuing similar IP in comparable businesses operating in the food and beverage sector and our proprietary IP sales database. As a result we delivered an IP valuation for the IP assets if sold on a highly accelerated timescale.
We delivered a Desktop IP Valuation , focusing on the key IP-related factors in the business which impact on trading performance, competitive advantage and value recovery. We highlighted the key IP assets relied on as collateral and stated our opinion on the minimum financial return we believe would be received upon the sale of these IP assets prior to an insolvency event. This helped the Company secure the bank’s continued support.
IP Assets Valued: Brand and brand-related assets, Key organizational knowledge