The valuation of Intellectual Property – which broadly speaking includes patents, trademarks, brand names, customer lists, copyrights, proprietary information and other forms of IP – is certainly part science and part art. Science in the sense that there are any number of financial models and formulas that valuation analysts can apply to the data associated with the IP – art in the sense that if the models and formulas are not applied in a rigorous and supportable manner then the results are not defensible.
As Intangible Assets and IP become an ever increasing component of value for companies, strategies necessary to maximize its value are never more important. The following describes the process necessary to enhance value for IP:
- Identify all of the intellectual property – this includes an understanding of the revenues and costs attributable to each property.
- Protect the identified IP to the extent possible – scenario analysis or cost benefit analysis is necessary to ensure that protection efforts are channeled towards the “right” IP.
- Project and model the potential markets and benefits of the IP.
- Manage and exploit the IP, this includes strategies for out-bound as well as in-bound licensing to protect and expand markets for example.
- Assessment of licensing terms
- IP assessment and valuation
- Transfer Pricing
- Independent valuation for Venture Capital, Private Equity and Institutions
- IP Portfolio valuation
- Goodwill determination and assessment
- Royalty rate studies
- Valuation of a portfolio of 3-D paper/graphic advertising products for securitization purposes
- Valuation of Listerine brand name
- Patented toothbrush valuation
- Acquisition of Software for logistics/delivery (a Fedex purchase)
BVA welcomes inquiries about our services. Contact Brentmore Valuation Advisors online, email us at EdP@BrentmoreAdvisors.com, or call 860.519.5648.
Knowledge is the critical resource in today's economy. Business success and growth today are dependent on knowledge assets.*
* "Intangible Capital" by Mary Adams & Michael Oleksak