GeographyLondon, UK
BackgroundFever-Tree is the world's leading supplier of premium carbonated mixers for alcoholic spirits by retail sales value, supplying hotels, restaurants, retailers bars in over 50 countries worldwide. Based in the UK, the brand was launched in 2005 and soon rose to a strong marketplace position.
The company was looking to list on the London Stock Exchange (AIM) and they required a team of experts to facilitate the production of the historical financial information as part of the listing admission document within this process. CFPro was nominated to step in and assist with this critical part of the Listing process.
Fundamental to the documentation of the historical financial information of the business, it was also necessary to value the company’s intangible assets, which included the Fever-Tree brand.
IssuesListing a business on any stock exchange is a thorough and detailed process. And for Fever-Tree, as it is for any business undergoing an IPO, it was necessary to detail out the company’s history, which included creating a set of reports for a period of 4 years, taking into account group structure changes, the development of a holding company, and the acquisition of the Fever-Tree brand. Coupled to the company history, valuing the Fever-Tree brand was not a simple activity, as there was no other company on the market at the time that was directly comparable in terms of growth, product value, marketshare and revenue. As a result, it was crucial to find a valuation methodology that was acceptable to AIM, the auditors and the company itself, to reflect the true brand value of the business.
ApproachThe CFPro Team stepped in to work in partnership with Fever-Tree and the Auditors at the time. Producing a set of accounts that accurately documented the company’s growth and financial activity was paramount, and was done through developing effective communication with all parties concerned to accurately reflect the value of the brand. Based on their extensive past experience of brand valuation in similar circumstances, Atar & Chris focussed on finding the best measurable methodology that would yield the results and match the expectations of all parties involved in this process – the TopCo, Fever-Tree, Auditors and AIM.
ResultThe London Stock Exchange welcomed FeverTree Drinks plcto an opening ceremony, marking the admission of its shares to trading on the AIM market, in November 2014 with an initial share price of 134p. Since then, their market value has increased 4-fold until January 2018 with the current share price (February 2018) standing at £2,407.