Multi-Brand Valuation Mandate for Intra-Group Transfer

Mandate Description

The objective of the mandate was to determine the economic value of several brands owned by the group in order to support an intra-group transfer in compliance with accounting, tax and regulatory requirements

The challenge was to ensure consistency between the value attributed to each brand and the profitability of the corresponding product lines, within a highly diversified brand portfolio representing the main driver of consumer recognition

Key Issues

The assignment required reconciling economic logic with tax imperatives while remaining faithful to operational reality

It involved finding a balanced and defensible value, neither overstated nor excessively conservative, in compliance with ISO 10668 standards and the OECD arm’s length principle

Each brand had its own history, margin profile and regional dynamics, requiring a detailed and precise financial translation of these differences

The mandate also had an organisational dimension, aiming to structure centralised brand management to facilitate traceability of internal royalty flows and transparency of value transfers within the group

Approach and Results

The valuation was primarily based on the relief-from-royalty method, with royalty rates derived from sector benchmarks sourced from international databases

A complementary reconstructed cost approach was used to assess brand reproducibility and anchor the valuation in a tangible economic perspective

The final report served as a reference framework for setting intra-group royalty fees, strengthening legal certainty and financial consistency at a European level