Why would a valuation benefit me?
There are many benefits of ascribing a value to intellectual property; the following are some of them:
- Makes your business more attractive to investors and buyers.
- Provides a tool to manage and measure the assets.
- Better determines the overall value of the business.
- Allows for determining how much of a business’ goodwill is due to intangible assets.
- Provides extra security and backing for the lenders.
- Identifies potential new sources of cash-flow and profit centers.
- May be used as collateral and as capital in joint-ventures.
- Non-listed companies, such as family owned businesses can learn their true value.
Do your reports meet special standards?
Our valuations comply with internationally recognized valuation standards such as:
- Uniform Standards of Professional Appraisal Practice (USPAP).
- International Valuation Standards Committee (IVSC) (50 Countries).
- Generally Accepted Accounting Principles (US GAAP).
- International Financial Reporting Standards (IFRS).
What information is necessary to perform a valuation?
- Detailed Annual statements complete with auditors’ notes and tax returns of the business for the past five fiscal years.
- Business and marketing plan and/or other documents describing the current and expected business of the company and financial and/or operating plans and projection.
How do you valuate an intangible asset?
Intangible Assets such as IPR’s are valued using internationally recognized and state of the art Methodologies and Models.
The Valuation Method will vary depending on the purpose of the valuation, the considered valuation date, ownership of the asset, and finally the environment.
What valuation methods are used?
The main valuation approaches and methods:
- The Market Approach: This approach reflects the current market principles, therefore its depends on comparisons or recent comparable market transactions, by using market multiplier such as P/E, P/Bv, P/ Sales, P/ Cash flow.
- The Cost Approach: This approach is an assets oriented approach rather than market approach, each component at the company’s assets are valued separately and summed to drive the total value of the company. Using this approach the appraiser estimates the value by estimating the cost replacing the individual elements of the company property, plant and equipment.
- The Income Approach: Under this approach the fair values is determined on the basis of future economic benefits that one expected to be generated by an assets over the remaining life.