AMS has an established client list and a proven track record in the improvement and fine tuning of companies' marketing activities:
- Working with a large strategic management consultancy on behalf of the client, a large drinks producer, AMS was engaged to support due diligence on a high end specialty brand.
- The client had developed detailed forecasts to evaluate the value of the business using an NPV approach, but wanted to create a more robust case to support competitive negotiations and internal approvals.
- The client was seeking to:
- Demonstrate the value of the brand to support the case
- Understand the key drivers of value
- Provide intangible asset valuation support for the transaction balance sheet
- Consider opportunities for delivering higher growth and return
Analysis and Teamwork
We gained a thorough understanding of the brand its performance and attributes through management interviews, existing internal information, financial trends and research.
We identified the markets in which the brand operated by splitting consumer groups into segments based on:
- Consumer demographics (age, sex)
- Distribution outlets (Clubs & pubs, retail)
- Market maps identifying key segments and segment characteristics for both market and brand were created.
- Overall financial forecasts for the brand were broken down to segment levels.
- Key output included a conceptual framework for brand based demand research.
We then built and tested financial case for each segment based on historic performance and growth prospects.
Our work uncovered the true value of the brand and increased the overall valuation by 12%. Based on this new information, the client aggressively pursued and closed the transaction.