What’s the value of EU auto brands, India’s top celebrities—and the Duff & Phelps' name?

BVWire–UKIssue #24-1
March 2, 2021

The portfolio of Fiat Chrysler brands is worth €10.4 billion based on a preliminary purchase price allocation valuation using an 1% average royalty rate, according to a white paper from MARKABLES. ‘The royalty rate [used by acquirer PSA Peugeot] might seem surprisingly low, considering the awareness and reputation of famous passenger car brands. However, it reflects weak profitability in the consumer vehicles sector, overcapacities, technological changes and environmental issues,’ the report concludes.

This makes Fiat Chrysler (their brands include Fiat, Chrysler, Dodge, Jeep, Ram, Alfa Romeo, Lancia, Abarth, Maserati, and SRT) the 12th most expensive brand portfolio ever acquired. The 1% average royalty rate ‘is in line with the royalty rate applied in 2011 when Fiat took over Chrysler,’ the MARKABLES paper says.

In other brand news, Duff & Phelps announced last week that they’re changing their name to Kroll (D&P’s private equity owners acquired Kroll in 2018). The new brand is supposed to emphasise a broader range of services and what the firm is calling a ‘tech-forward’ approach to solving risk and business problems. For most of the UK business valuation community, where Duff is a dominant brand, this change will not come easily. In any case, ‘Kroll’ intend to continue to publish research, including rankings of brand value such as their Fourth Annual Indian ‘Celebrity Brand Valuation Study 2020: “Embracing the New Normal.”’ (Virat Kohli, captain of the India national cricket team, has topped the powerful celebrity brand list for the fourth year in a row, even though the COVID-19-related year reduced total brand values in India and drove a larger percentage of the value to social media.) The report is a deep analysis of how endorsements affect the brand value of celebrities alongside other factors such as age, fees charged per endorsement, social media presence, and the like. It also examines the impact of the pandemic on both brand value rankings and the celebrity endorsement space.

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