A UK-based clothing and footwear brand specializing in the B2B and B2C sale of branded and white-label indoor footwear and loungewear. The Company has a circa 10-year track record and gained traction in the UK slipper market, generating revenues in excess of £2m per year.
We were engaged by the Company to provide a distressed IP valuation when the Company experienced financial difficulty, owing to supply chain issues and increased costs. The Company was considering restructuring and seeking to raise cash by selling its IP assets to an IP-holding company and licensing it back.
Using our Metisology® approach, we identified all the IP assets that underpinned the Company's operations and revenue streams. We critically appraised the brand's exposure and materiality to revenue as part of our assessment and valuation process. We identified that the brand strategy and brand exposure secured by the Company’s high annual marketing spend, were critical in underpinning customer acquisition. Despite some evidence of customer loyalty it was clear that the Company was having to commit high annual marketing spend to sustain annual revenue.
We delivered two IP valuations reflecting the likely value of the IP assets from an accelerated M&A scenario and the expected amount that may be reasonably expected to be realised from the sale of the assets in a highly-accelerated auction. We provided the final deliverable ahead of schedule, which provided the Company's management with the necessary information to make well-informed decisions regarding the sale of its IP assets.
