An asset sale or transfer
Assess specified intangible assets as part of a transaction or internal transfer. The scope needs to distinguish the asset itself from supporting people, systems and other assets.
Valuation service
Intangible asset and intellectual property valuations
Brands, software, technology and other intangible assets can contribute to business value in different ways. A useful valuation begins by identifying the asset, the rights involved and the economic benefit being assessed. The task is to connect those facts to the intended decision, rather than assume that development expenditure or a registration establishes value.
When it is useful
Decisions this valuation can support
Licensing discussions
Analyse the commercial assumptions around the right to use an asset. Territory, exclusivity, term and the obligations of each party can change the question being valued.
Acquired intangible assets
Support the valuation of identified assets for a financial reporting requirement. Accounting identification and recognition should be established with the financial statement preparer.
Evidence and methods
How the value is assessed
Depending on the asset and evidence, an income method may assess the benefit attributable to it, a market method may examine relevant transactions, or a cost method may estimate an appropriate replacement basis. Relief from royalty considers the economic benefit of avoiding a licence payment. The chosen method must address overlapping value so the same benefit is not counted twice.
Read about our valuation approach and Calvin Lim’s experience.
Information we may need
- A description of each asset and the proposed purpose of the valuation
- Ownership, registration, licence and other rights documentation
- Product or asset-level revenue, costs and forecasts where available
- Development history, expenditure and remaining investment needs
- Licence terms, royalty arrangements and relevant market evidence
- Information about useful life, competition and technological change
What the work can deliver
The agreed output can identify the asset and rights valued, measurement date, purpose, methodology, useful-life assumptions and conclusion. Sensitivities can show how value responds to changes in revenue, royalty rates or other important inputs. The scope should make clear where legal opinions or specialist technical input are needed.
Scope, fees and timing
Effort depends on the number of assets, clarity of ownership and rights, availability of separate financial information and need for external evidence. Where asset-level forecasts do not exist, developing supportable allocations may require additional work. A detailed asset description helps establish the scope.
Related support
Explore connected valuation services
Real-property valuation, tax advice and legal advice require appropriately qualified advisers. Any reliance on other specialists is agreed within the engagement scope.
Practical questions
Frequently asked questions
Does money spent developing IP equal its value?
No. Cost can be relevant evidence, but expenditure alone does not establish the future commercial benefit or an achievable transaction value. The valuation purpose and facts determine which approach is useful.
Is every intangible asset goodwill?
No. Identifiable assets can be distinguished from goodwill. In financial reporting, the relevant accounting criteria must be considered; a valuation does not by itself establish that an item can be recognised on the balance sheet.
Does the valuation confirm that IP rights are enforceable?
No. Legal ownership, validity and enforceability should be addressed by an appropriately qualified legal adviser. The report should state the rights and legal assumptions on which the financial analysis relies.
Discuss the purpose of your valuation
Tell us the interest involved, the intended use and any deadline. We can then discuss scope and the information needed.