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Experts in business and intangible asset valuation

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Brand Disposals

Brands and other intangible assets are increasingly being sold without an attached operating business and associated tangible assets. These valuable brands become available for a variety of reasons:

  • They were acquired along with other brands and operating businesses but are not considered to be of strategic importance by the acquirer.
  • The brand competes with a similar brand in the same portfolio.
  • The brand is peripheral to the vendor's core business.
  • The vendor lacks the resources to develop the brand.
  • Through continued underinvestment the brand has become underappreciated and unexploited.
  • While the brand remains strong the business has failed due to uncompetitive operating costs.

Brand disposals require a unique understanding that is not needed for selling other assets such as plants, machinery and property where there is an active market or the original purchase price provides guidance to a tangible asset's worth. Brands are unique and selling them is a complicated process. The benefits of purchasing an existing brand to the acquirer are as equally diverse as the reasons for sale. Acquiring an existing brand may:

  • Provide access to a new market where the acquirer's brand is unknown.
  • Fill gaps in the acquirer's portfolio.
  • Allow a retailer to sell its own range of branded products where it would be inappropriate to use its own brand.
  • Increase volumes and margins on previously unbranded sales.
  • Cost less than developing a new brand with equivalent equity from scratch.

Intangible Business has valued, disposed and advised on the acquisition of many brands, both individually and bundled with associated fixed assets. By identifying potential acquirers, communicating the brand's equity amongst consumers, demonstrating the value of the opportunity and managing the sale process Intangible Business regularly exceeds the target sales value on behalf of the vendor.

Example Cases