Brand Valuation Mandate in a Capital Reorganisation Context
Independent valuation of a long-established travel brand conducted as part of a capital reorganisation operation
Mandate Description
The mandate consisted of a brand valuation carried out on behalf of a French travel group as part of a capital reorganisation operation.
The objective of the assignment was to determine the economic value of a long-established brand recognised on the market for several decades, in order to integrate it into the group’s strategic and financial documentation.
The valuation was also intended to identify the specific contribution of the brand to the overall value of the group and to assess potential options for transfer, licensing or refinancing based on this intangible asset.
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 distinguish the intangible value of the brand from the operational value of the group.
The valuation also needed to be performed in compliance with international standards, in particular ISO 10668 and IVS 210.
Approach and Results
The valuation relied on several complementary approaches.
- An income-based approach was applied, using the relief-from-royalty method.
- A market-based approach was also implemented, based on a panel of comparable brands in the tourism and hospitality sectors.
- In addition, a complementary historical cost approach was used to support the overall valuation framework.
The analysis resulted in a defensible valuation range for the brand, which served both as a support for financial communication and as a negotiation tool in discussions with creditors.
The work highlighted the heritage and emotional value of the brand, as well as its decisive role in the reconstruction of the group’s economic model.
This assignment complemented two other mandates carried out as part of the same global restructuring operation.
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.
Discover our TRACK RECORD
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.