A global leader in consumer products wished to transfer a basket of intangible assets (brand names) of great value to another subsidiary of the group, and then set up a usage fee system for the use of these brand names.
Any public or private decision can have direct or indirect economic effects, as well as positive or negative impacts. Studying these effects is a key element to assess a decision’s efficiency, viewing the decision from the eye of the beholder, either private or collective and over the short, medium or long term perspective.
The effects can be measured across several dimensions based on the subject and type of decisions. Decisions can impact employment, productivity, the environment, profitability, costs, sales flows, etc.
Using a rigorous methodology, TERA’s studies help define and assess the impact of all types of decisions. Our studies are sourced and transparent, and can be diffused for a general public, in any form, and can be upheld in court against direct or indirect third parties impacted by study decisions.
When carrying out a mission, TERA consultants have access to the best tools that they adapt to the issues at hand.
Cost-benefit analyses draw on TERA’s modelling expertise in bottom-up and top-down cost modelling. Discount rates are calculated for each case based on the costs of using capital required for projects. Analyses can also be carried out using real option methods to evaluate if delaying a project lowers future uncertainty (for example R&D projects or very innovative product launches).
Analyses can also provide a monetary value for intangible effects such as corporate reputation damage, the effects of strategic repositioning in know-how, products, etc.
In terms of public decisions for prospective budgets or new legislative or regulatory terms, our impact studies include all direct and indirect effects, as well as impacts borne by the concerned parties. To carry out these analyses we use input-output matrices to calculate the collective utility function, as well as all positive and negative externalities associated with this project.
TERA assists all impacted stakeholders in their dealings with third-parties or authorities. TERA mobilises the following required tools: econometrics, cost (and margin) modelling, marketing studies, etc. All our studies respect our rigorous and transparent methodology and can be upheld in court against third parties.