A leading manufacturer of branded food products engaged AAG to estimate the fair value of certain intangible assets acquired in a business combination. The acquired company was a leading manufacturer and distributor of salty snacks and the acquired brands were iconic in their region.
Project Description: AAG, in cooperation with management, applied sophisticated valuation techniques to isolate the value of the brands from other intangible assets including goodwill. The brands were found to have an indefinite life and a significant portion of the purchase price was ascribed to them. Also meeting the contractual separability criteria were customers relationships, which, due to their nature, were ascribed limited value. Customer relationships were valued using a distributor method. The remainder of the purchase price was attributed to goodwill.
Outcome: The intangible assets are properly quantified.The manufacturer has the clarity of how much businesses are worth and make financial decision based on the valuation.
“Business valuation allows us to quantified the business accurately, so we will not be at the losing end” CEO of said company. *
*Due to confidentiality agreements and upcoming sale of company we cannot disclose the name of the company