Success story

Valuation of a brand of a multinational company in insolvency proceedings, for financial institutions

Context:

The financial institutions had to decide the next steps to be taken after an important client entered into insolvency proceedings. The valuation of the Company’s most important asset, the brand name of its flagship product, was requested in order to determine the recovery value in the event of a decision not to approve the agreement proposed by the Company.

How we helped:

  • The Company’s assets and sources of positive cash flow generation, that would allow repayment of the debt in the future, were analyzed.
  • The only significant asset in the Company was valued taking into account the expected income from the sale of such product.
  • The amount that would be recovered in the event that the brand was sold and the agreement was approved were analyzed.

Result:

  • The amount that financial institutions would receive in the event of the sale of the brand was valued.
  • Information was provided to facilitate the entities’ decision making.