Brand Valuation Mandate in an International Acquisition Context

Mandate Description

The objective of the mandate was to determine the fair economic value of the brand prior to the transaction in order to support discussions on the overall acquisition price and the allocation of value between tangible and intangible assets.

The analysis focused on the brand’s reputation, its competitive positioning and the strength of its identity among a loyal international customer base.

A perception study was conducted jointly with the marketing and finance teams to connect perceived brand value with actual economic performance in a sector where image and attractiveness are key drivers of growth.

Key Issues

The main challenge of the assignment was to strike the right balance between the symbolic strength of a heritage brand and the financial discipline required in an international acquisition transaction.

The objective was to make the intangible measurable without diluting what made the brand name and its history unique.

Discussions between seller and buyer required a neutral and independent approach, in line with ISO 10668 and IVS 210 standards, allowing brand value to be isolated from overall goodwill while remaining consistent with the valuation of the business.

In a context where founder emotion met the integration logic of a large group, the brand valuation acted as a bridge between two economic cultures, craftsmanship and international rationalisation.

Approach and Results

The valuation relied on several complementary approaches, including an income approach based on the relief-from-royalty method, a market-based approach derived from comparable transactions in the luxury sector, and a reconstructed cost approach reflecting historical investments in brand development and communication.

The analysis resulted in a coherent and well-reasoned valuation range, acknowledged by both parties, and enabled a strong alignment between intangible brand value and the final transaction price.