Brand M&A

Can a company with less than 1bn Euro revenue and an EBIT below 100m Euro be worth around 2bn Euro? Beck’s can! After all, this is the price the brewery was sold for in 2002. It is evident, that the high purchase price was not only paid for real estate and filling plants, but especially for a strong brand that has unique selling points despite the highly competitive environment and makes a broad market access possible in the first place.

In the course of M&A transactions, brands are of particular relevance if there are competitive advantages that are not demonstrated by the balance sheet. Quick market access, competence and expertise transfer, strategic orientation with competition or portfolio optimisation are typical occasions where the brand has a strong leverage effect on the transaction price.

However, contractors, M&A consultants, investment bankers, affiliated companies, lawyers or tax advisors involved in the M&A process often have different ideas regarding the value of a brand. The key challenge in this process is to determine an ideal transaction price that is accepted by all involved parties.

What we offer

We offer a brand-specific due dilligence that is based on the analysis of the whole brand value chain. Taking into account benchmarks, the individual performance of the brand is presented and evaluated in a transparent way. The in-depth knowledge regarding strengths, weaknesses, chances and risks of the brand creates a significant knowledge lead and provides a coherent line of argument during negotiations.

The valuation approach by BIESALSKI & COMPANY has been validated and tested multiple times and complies with the accepted valuation standards in accordance with IDW S5 and DIN/ISO. The easy, transparent and comprehensible presentation of the results significantly contributes to the high acceptance of the results, which was proven during a variety of transactions.

We do not leave you alone during negotiations, but support you with structuring the chain of argument and explaining the brand value to the relevant parties.

Your benefit

You receive a basis for decision-making with a precise transaction price.

Sellers can build their argumentation regarding the purchase price on the objectified and resilient brand value, while the disclosure of “hidden reserves“ reinforces further value adding potentials. On top of that, proceeding analysis and quantification of expansion potential raises the “strategic value“ of the brand.

Buyers, on the other hand, gain security for their planned acquisition through the monetary brand valuation, as systematic brand risks and strategic potentials are made transparent. Moreover, precise recommendations for integration and brand management post purchase (post-merger integration) provide substantial added value.

As a result, both seller and buyer benefit from the information advantage that is offered by a brand valuation. Overall, strong arguments are the most important prerequisite for superior negotiations and thus for successful completion.