Mergers & Aquisitions

Brand Value Analysis

Problem

A family-run business was to be put up for sale. The business had some good selling points and a well-recognized, well-liked brand name. However, due to some unusual circumstances, the company's financial performance in recent years was very negatively affected. Thus, only the brand value could be tested as a means of appraising the business and establishing a buy-out price.

Project Goal

The goal of the project was the quantitative and qualitative valuation of the brand (brand awareness, distribution, trademark protection, brand identity, etc.) and from that, the establishment of the company's value.

Procedure

Preparation of company background information/existing market data, market research studies

• Revenue Development
• Product Portfolio
• Customer Structure Analysis
• Analysis of Trademark Protection
• Profit Contribution

Qualitative Interviews, with:

• Trade Organization Employees
• Sales Representatives
• Foreign Distributors
• Trade Magazine Editor
• Opinion Leaders among the Customers

Quantitative Study

• Brand Awareness
• Decision Process
• Purchasing Behavior
• Brand Preference
• Willingness-to-pay
• Brand Image

Projection and Discounting of Profits

• Revenue Projections
• Potential New Distribution Channels
• New Products
• Internationalization
• Expected Costs
• Necessary Resources
• General Price/Cost Development
• Determination of the Risk Premium
• Discounted Operating Profits

Result

As a result of the project, we were able to document the brand analysis and determine the brand value, which served as the basis for sales negotiations.

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