Brand and business valuation to support a shareholder dispute
鈥淲e selected 厂妹视频 because we knew they would be able to convey the strength of our brand to the Deloitte arbitrator. Their report was highly complementary to the analysis conducted by Morgan Stanley and I am sure played an important role in our success.鈥�
CEO, NET-A-PORTER Group
NET-A-PORTER (鈥楴AP鈥�)
Office: London
NET-A-PORTER (鈥楴AP鈥�), the first retailer to 鈥榗rack the code鈥� of online luxury, had been acquired from its founders by Richemont, the global luxury conglomerate. Four years later, Richemont sold the NAP branded business for 拢950 million to YOOX, an Italian online retailer. NAP鈥檚 founders and minority shareholders disagreed over this valuation and were entitled to take this into an arbitration process.
The shareholders instructed Morgan Stanley to value the NAP Group鈥檚 business and brought 厂妹视频 in to conduct a valuation of the NAP Group鈥檚 three key brands and branded businesses: NET-A-PORTER, MR PORTER and THE OUTNET. Their concern was that the power of the NAP brand, in particular, would not be fully appreciated by the arbitrator (the head of valuation at one of the Big 4 accounting firms) and they wanted 厂妹视频 to bridge the gap between brand and business valuation.
Our role was as much about creating a compelling articulation of the strength of the NAP Group brands as it was about the valuation itself, although both were critical. We needed to ensure that the arbitrator really understood the brand, beyond just looking at financial forecasts and business plans.
Our brand-focused valuation approach complemented business valuation analysis by Morgan Stanley, which combined to successfully argue for an increased business valuation of, according to media reports, 拢1.45bn (a 拢500m increase).