Intangible Assets Valuation

INTANGIBLE ASSETS VALUATION

“Intangible Assets valuation helps to ascertain not only the monetary value of IA but the true value of the business as a whole”

Intangible Assets (IA): Intangible Assets are long lived assets used in the production of goods and services. It represents legal rights or competitive advantages developed or acquired by an Intangible owner. In order to have value, intangible assets should generate some additional benefit to the Intangible owner.

What: Brand, Patent, Trademark, Goodwill, Contracts, License, Royalty Agreement, Software, Database, Customer Relationship, Patented Technology, Franchises etc.

Why: Incremental Turnover or Earnings (Pricing, Volume and Better Delivery amongst others), Cost Savings (process economies and marketing cost savings) and Increased Market Share or Visibility.

When: Financial Reporting, Transfer Pricing/ Taxation, Financing collateralization, Strategic Planning & Management Information, Forensic Analysis and Dispute Resolution, Insurance, Issuance of Sweat Equity Shares, Other Regulatory compliance etc.

How: Cost Approach, Market Approach, Income Approach