Leveraging brand value to secure the future for employees of a well-known British brand

Well Known British Brand

Office: London

Interbrand was retained by the trustees of a UK insurance provider’s pension fund, which was in a deficit position, to assess a proposed Asset-Backed Funding (ABF) structure to eliminate the fund’s deficit. The proposal involved the use of the brand asset as security to generate an income stream that would be used to fully offset the deficit over a 25-year period, with the fund granted security over the core brand assets. The trustees were, however, unclear whether this was in their members’ best interests.

We made an assessment of the current value of the brand (‘base case’), the minimum realizable value of the brand in a ‘distressed sale’ scenario, and the likelihood of a brand value decline of a scale that would prevent the fund from recovering the value of its security through a sale of the brand. In addition to this, our valuation report included an in-depth assessment of the brand through the lens of Interbrand’s Brand Strength framework.

We produced a number of key insights and recommendations relating to the management of the brand, and these findings were separately presented to the brand and marketing teams at the company.

Our pension scheme trustees really appreciated the comprehensive approach taken by the Interbrand team and found the insight and recommendations presented extremely valuable in helping us reach our final decision.

Chairman of Trustees