CASE STUDY: 4

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Client: Our client is India’s pioneer in Express Distribution and Supply Chain Solutions, committed to make their customer's business always ahead while partnering with them to elegantly customize the delivery offering.

Objective: The objective of the valuation is to understand the intangible valuation of the organization and report on loss in impairment of brand and goodwill.

Methodology: The most commonly recognised valuation techniques include (1) Industry standards,(2) Rating/ranking,(3)Rule of Thumb,(4)Standard Discounted Cash Flow plus probability adjusted and risks adjusted discounting,(5)Monte Carlo Approach,(6) Probability and Decision Tree Approaches and (7) Option Analysis. All these approaches require critical analysis, but as degree of uncertainty increases, it is increasingly required to some subjectivity based on experience to arrive at valuation result.

Solutions: ITAG have considered all these methodologies and after detailed analysis, the method which best estimates the most credible loss of brand value and goodwill to the business is the Standard Discounted Cash Flow plus probability adjusted and risk adjusted discounting. ITAG delivered a detailed report that have made positive multiplier effect on overall brand and goodwill of the client.

ITAG Advantage: The output provided by ITAG provided the client with a very good understanding of both the markets and helped it to make suitable suggestions to its customer. The client was very happy with ITAG’s work and expressed a desire to engage ITAG again in the future.