Recent use case for MARKABLES royalty rates in Italy

Seri Industrial SpA, formerly KREnergy SpA, is an Italy-based company focused on the storage battery industry. Through its subsidiaries, the Company operates in the whole supply chain. It divides its business in Design and Construction Plants, which covers the designing and construction of plants for the production of secondary lead from dead batteries; Secondary Lead, including MRF (Material Recycling Facilities) activities; Special Compounds, specialized in the production of polypropylene customizable compounds used in the battery and automotive industries; Plastic Molding produces covers, boxes and accessories for batteries for the industrial and automotive sectors; Storage Batteries, which produces lead and lithium batteries and customizable solutions for special applications, and Research and Development (R&D), which manages branches across Italy and world partnerships. Seri is listed on the Euronext Milan exchange (ticker: SERI) and has approximately 1.350 employees.

In 2024, Seri executed the acquisition of Industria Italiana Autobus S.p.A. (“IIA”), an Italian company that produces Vivacity and Citymood electric, LNG, and CNG buses and public transport vehicles under the Menarinibus and Padane brands. The business combination was valued and reported under IFRS 3 in Seri’s 2024 financial report.

The relief from royalty method was applied to value IIA’s brand names. The appraiser used MARKABLES data to determine appropriate valuation parameters and concluded with a 0.9% royalty rate on revenues, and a remaining useful life of 10 years. The resulting value of the brand names accounted for 4.2% of IIA’s enterprise value.