Valuation drives home value of intangible assets in thl joint venture

EverEdge valuation helps Tourism Holdings Limited realise the true value of its intangible assets and enables the company to substantially reduce its cash contribution to a major joint venture transaction.

The Challenge

thl was looking to enter a 50:50 joint venture (JV) with US company Thor Industries, the world’s largest manufacturer of recreational vehicles (RVs).  Through the JV, Thor and thl would look to leverage their relevant skills, business models and know-how to enable the joint venture to become the leading global digital platform for the RV industry.

Over the years, thl had invested significantly in building and acquiring technology-based assets to enhance its customer’s journeys and this technology would be central to the JV. Hence thl wanted to ensure that these assets were accurately identified and valued as part of the negotiation process.

The EverEdge Solution

EverEdge worked closely with thl to provide an expert and independent valuation of the intangible assets being reviewed as part of the JV, as well as thl’s total enterprise value.

To develop an accurate valuation, EverEdge reviewed thl’s current business offerings and the features associated with its intangible assets, including its technology stack, reputation and other relevant components.

Industry research & analysis was conducted in order to identify and validate the value of thl’s current intangible asset portfolio, as well as the quality of additional potential future revenue streams.

EverEdge then built a comprehensive valuation, assessing qualitative, quantitative and contextual factors, to establish a true and fair value of thl’s intangible assets.

The Result

Rather than purely looking at the financial performance, EverEdge’s independent valuation provided thl with an accurate view as to the value of its intangible asset portfolio including the data, content, know-how, process, trade secrets and other information that made up the value of its technology.  

The value of thl’s intangible assets offset what would have been a much higher cash contribution had the company not been able to recognise the value these assets had created over time.

The return on investment for thl on EverEdge’s work was more than 360x the cost of the valuation.

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