Brand valuation mandate as part of a strategic fund raising

Mandate Description

The objective of the mandate was to determine the fair value of the brand as an autonomous intangible asset, in order to highlight its specific contribution to the overall value of the company.

The valuation was carried out in the context of a fundraising process, during which the company sought to attract investors specialised in health and wellness products. The brand, well established in the Swiss and German markets, benefited from a premium positioning built on natural ingredients, transparency, and clinically proven effectiveness.

The purpose of the assignment was to objectify the marketing narrative through a structured financial valuation, to make customer perception economically tangible, and to strengthen the credibility of the documentation presented to potential investors.

The analysis involved the marketing, management control and executive management teams, ensuring consistency between the strategic plan, financial projections and the perceived strength of the brand within its niche market.

Key Issues

The central challenge of the assignment lay in the economic translation of an intangible asset deeply rooted in consumer trust and emotional attachment.

The brand represented the core of the business model, far beyond a simple commercial identifier: it embodied both the scientific credibility and the emotional promise of the company. The objective was therefore to connect this symbolic value to a rigorous financial framework, while adhering to the principles of neutrality and transparency required by market standards.

The valuation needed to demonstrate to investors that the brand was not merely a distinctive sign, but a strategic driver of margin generation, customer loyalty and sustainable growth.

In the context of fundraising, it was also essential to ensure full alignment between financial assumptions, so that the value attributed to the brand would integrate naturally into the consolidated business plan.

Approach and Results

The valuation relied on a comprehensive and complementary set of methodologies:

• Income approach (relief-from-royalty method), based on the capitalisation of the theoretical royalty flows the company would have paid if it did not own the brand. This method isolated the share of profitability directly attributable to the brand, taking into account customer loyalty, price premium and distribution channels.
• Market approach, based on a panel of recent transactions in the dermocosmetics and natural care sector, allowing the identification of valuation ratios applicable to brands with comparable profiles.
• Cost approach (reconstructed costs), reflecting the cumulative investments in clinical research, product development and brand communication, in order to ensure consistency between perceived value and historical investment efforts.

The analysis resulted in an economically justifiable valuation range, in compliance with ISO 10668 and IVS 210 standards, while clearly illustrating the correlation between brand reputation and the company’s economic performance.

Beyond the final valuation outcome, the report provided a strategic perspective on intangible value. It enabled management to redefine internal brand monitoring indicators, identify underexploited value drivers, and anchor the brand at the core of the financial narrative presented to investors.

The mandate also contributed to raising management’s awareness of the dynamic management of intangible assets, encouraging the monitoring of brand value over time in the same way as tangible assets.