The Hidden Value You’ve Built: Why Your Brand Is Worth More Than Your Sales

Brand Value

Most owners in the gifts and homewares space underestimate what they’ve actually built. They look at turnover, margins, and stock levels—but forget the biggest invisible asset: the brand value.

When it comes time to sell, it’s not just about what you’ve earned. It’s about what your brand is worth to the next buyer. And in many cases, the brand alone is the difference between a modest 4× multiple and a premium 10×.

Why Branding Changes the Game

In a sector full of candles, ceramics, hampers, and décor, product is rarely unique. What makes one business stand out is the story, packaging, reputation, and repeat loyalty. That’s the brand.

A strong brand creates value by:

• Pulling customers back (repeat orders without constant ad spend)

• Securing premium shelf space (retailers want your label, not just “a candle”)

• Winning corporate or bulk gifting clients (brand trust matters in B2B gifting)

• Attracting strategic acquirers (who see your brand as a shortcut into your market)

What Buyers Actually Pay For

Here’s the reality from the M&A front line:

• A generic importer selling through resellers: worth maybe 3–5× EBITDA.

• A recognisable consumer brand with DTC traction: easily 7–10× EBITDA.

• A cult or exportable lifestyle brand: can push 10–14× EBITDA, sometimes even sold on revenue multiples if margins are strong.

Examples Where Branding Drove Premium Value

• T2 Tea (AU): Acquired by Unilever for ~AU$70–80M. Multiples were estimated at 12–14× EBITDA. It wasn’t the tea—it was the brand presence, giftability, and global growth potential.

• Ecoya & Trilogy (NZ/AU): Sold to McPherson’s for ~AU$50M. Multiples in the 9–10× EBITDA range. The buyer didn’t pay for wax and fragrance; they paid for the brand equity.

• Happy Socks (Sweden): Valued around €80–90M with 10–12× EBITDA multiples. The product was socks—what buyers paid for was quirky design, global gifting appeal, and a loyal fanbase.

• The Hamper Emporium (AU): Estimated deal size AU$20–30M, at 7–9× EBITDA. Seasonal, yes—but the brand dominance in corporate gifting made it a defensible niche.

The Brand Premium: What You’ve Built

If your business ticks these boxes, you’re likely sitting on a premium multiple:

• 60%+ gross margins

• Strong repeat customer base

• Branded packaging that consumers recognise

• 40%+ DTC or online sales

• Consistent seasonal demand (e.g. Christmas, weddings, corporate gifting)

These traits mean you’ve built more than a business—you’ve built an asset that reduces buyer risk and increases future upside. That’s what buyers pay extra for.

Takeaway for Owners

Don’t undersell what you’ve created.

Your brand isn’t “fluff.” It’s a hard financial asset that can double or even triple your exit valuation compared to an unbranded competitor.

If you’re planning a sale in the next 1–3 years, start documenting your brand strength as much as your financials. Buyers will reward you for it.

👉 Owners in gifts and homewares who invest in branding don’t just sell products. They sell trust, story, and repeatable demand. That’s the hidden value—and it’s worth millions.