Brand Valuation Mandate for a Beverage Sector Transaction
Independent valuation of a bottled water brand conducted as part of a strategic transaction in the agri-food sector
Mandate Description
The mandate consisted of a brand valuation assignment carried out on behalf of a European agri-food group, in the context of a strategic transaction involving a company specialised in the production and distribution of bottled mineral water.
The assignment followed a prior business valuation and aimed to isolate and estimate the economic value of the brand as a standalone intangible asset.
The objective of the valuation was to determine the fair value of the brand within transactional discussions, identify intangible value creation levers and document the brand’s contribution to the overall value of the business.
Key Issues
The main challenges of the mandate were to assess the strength of the brand and its ability to generate future economic cash flows.
A key objective was to measure the brand premium associated with an internationally recognised heritage asset.
The valuation also required distinguishing the value of intangible capital from the operational performance of the company.
Finally, the assignment aimed to ensure methodological consistency between the business valuation and the brand valuation, in accordance with international standards including ISO 10668 and IVS 210.
Approach and Results
The valuation relied on several complementary approaches.
- A reconstructed historical cost approach was applied to assess the reproducibility of the intangible asset.
- An income-based approach was also used, estimating brand value based on theoretical royalty savings.
- In addition, a market-based approach was implemented, drawing on sector benchmarks observed in transactions involving brand assets in the beverage industry.
- The analysis resulted in a coherent and well-supported valuation range for the brand, taking into account its reputation, market share and international reach.
The findings highlighted a strong correlation between brand value and the company’s economic performance, while underlining the significant contribution of premium image and positioning to overall valuation.
The valuation served as a technical reference within the transaction process and strengthened the group’s financial and strategic documentation.
The analysis also enabled the formalisation of an internal brand value reporting framework, facilitating the periodic updating of brand value within consolidated financial statements.
The transactions shown include those completed by, or with the involvement of, Hectelion team members in current or previous professional roles. They are presented for illustrative purposes only and do not imply exclusive responsibility by Hectelion.
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The transactions presented were carried out by, with the contribution of, or with the participation of members of the Hectelion team in the context of functions performed currently or previously.