Intangible Asset Valuation Following Acquisition of Travelbag and Bridge The World

Approach

The position of both brands at the point of acquisition had to be analysed to determine brand strength. Qualitative research on all ebookers and competitive brands was evaluated to establish public perception of each of the brands in the ebookers group (customers and potential customers), attitudes towards product distribution and service delivery, and perception of the competition, and to determine the core characteristics for each brand's customers.

The relationship to suppliers was also investigated and contracts with airlines analysed as these were critical in maintaining brand strength as well as being alternative intangibles to be considered for valuation.

The relief from royalty brand valuation methodology was used to value brands as this method is directly aligned with the economic rights of the brands and how they would be exploited for value by a commercial buyer. This approach also included elements of the market-based and cost-based approaches. It also used information researched from comparable transactions.