Combining Brand Equity and Specialized Assets Creates Compelling Case for Investors
Client: Artificial Sweetener Manufacturer
Challenge: Value Manufacturer's Brand and Dedicated Tangible Assets
A global artificial sweetener manufacturer wanted to secure additional financing. Management believed its enterprise value was limited to its brand and certain tangible assets. AccuVal saw more.
AccuVal Approach
Drawing from extensive experience in the pharmaceutical, cosmetic and food processing industries, AccuVal suggested a strategy to value the brand together with its chemical formulas, technical and manufacturing expertise, and FDA approvals, even if the patents had expired. AccuVal also suggested the manufacturer bundle all of the machinery dedicated to the production of the sweetener products, because, if viewed independently, the value of all of the assets would be substantially diminished. By bundling these unique and specialized assets, the manufacturer would be offering knowledgeable buyers the ability to produce products with a predictable remaining economic life and cash flow. The strategy, conceived by AccuVal, resulted in a real world evaluation that estimated the true value of the tangible and intangible assets of the business.
Bottom Line: Accurate Enterprise Valuation to Attract Investors
Bundling the tangible and intangible assets into a business enterprise valuation gave the manufacturer a solid foundation for presenting a compelling case for investment in these salable assets.
The AccuVal AdVantage™
The expertise to uncover, bundle and determine the value of intangible assets. The vision to suggest valuation strategies with real world sensibility. Experience in virtually every industry and product category. Valuations that include real market information, financial performance, barriers to entry and competitive factors. That's The AccuVal AdVantage™ at work.
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