A renowned international retailer of clothing, accessories and fragrances, with a 20-year track record and operations across numerous continents. The Client operates circa 200 brick-and-mortar stores and e-commerce websites optimized for 12 countries. Its products are sold in circa 500 franchise and license stores in more than 50 countries. The Group is listed on the London Stock Exchange and reported recent revenues of more than £600m. Following the pandemic, the Client rallied to combat issues such as reduced store and wholesale revenues, as well as rising staff costs and significant supply chain disruption.
We were introduced by the Client's advisors to provide a valuation of the Client's critical IP assets in a downside scenario, to support it in considering its restructuring options.
Utilizing our Metisology® approach, we identified that the business relied on brand-related assets, critical databases, and key organizational knowledge. The Client’s prominent brand has received significant exposure from its 20 years of trading, supported by an extensive IP portfolio, consisting of over 1,500 registered trademarks, 500 domain names, and 250 design rights. There was evidence of global brand awareness across multiple product categories, with the Client accruing annual licensing revenues in the seven figures in non-core product categories. The Company had quickly pivoted to focus on an omni-channel strategy after Covid closures, which enabled greater brand exposure, particularly through high visibility on key online marketplaces, resulting in diversified revenue streams. This was a strong indicator of brand value.
We delivered an IP Valuation reflecting our estimate of the likely value of the Client’s IP Portfolio prepared on an ex-situ (break-up) basis. Our valuation of the Client’s IP assets was utilized to inform the Group’s senior management team and its restructuring advisor’s decision making. The Board utilized our assessment and report on IP Value to inform an ultimate sale of specific IP rights pertaining to a specific international territory. The deal generated tens of £millions for the Company and created an opportunity for brand expansion and awareness in an international market. Hiving off specific IP rights for licensing and franchising in new territories or non-core product categories can be effective monetization strategies.
Learn more about developing an IP strategy and IP licensing.
IP Assets Valued – Brand & Reputation, Registered Trademarks, Ecommerce Content and Domain Names, Registered Designs, Critical Databases, and Key Organizational Knowledge.
