Course Details
Because businesses are often worth far more than the sum of their hard assets and working capital, a crucial aspect of Appraisal Economics’ valuation services involves intangible asset valuation, also known as IP valuation. These assets must be valued for purchase price allocation purposes when a business is acquired. This allocation is required under ASC 805 (formerly SFAS 141), “Business Combinations.” In addition to real estate and machinery/equipment valuations, Appraisal Economics has extensive experience in intangible assets valuation, and establishing the useful lives of such assets.
Among the various types of intangible assets to which Appraisal Economics has assigned value are:
Patent valuation, copyrights and licenses and licenses
Customer lists and relationships
Non-compete agreements
Favorable financing
Software
Trained and assembled workforces
Contracts
Leasehold interests
Unpatented proprietary technology
In-process R&D
Databases
Trademark valuation, trade names
Intangible assets such as brands, intellectual property and licenses now comprise a greater percentage of the economic value of successful businesses than ever before. Some economists argue that intangibles represent the main performance drivers in the current transition from a traditional financial economic structure to a new knowledge-based economy.
The value of identifiable intangible assets is important to:
Shareholders and their advisors, for use in assessing the true worth of their companies
Management, as a useful tool for measuring performance, for taxation purposes and in the event of an acquisition or disposal under ASC 805 (formerly SFAS 141)
Financiers, for use in assessing the borrowing capacity of a company when arranging funding facilities. Sophisticated lending institutions now recognize the value of certain intangible assets as security for loans.
Determining the true value of a company requires an accurate, defensible assessment of both types of assets –tangible and intangible property. At Appraisal Economics, we have the skill, expertise, experience and resources to provide meaningful intellectual property valuations. As importantly, we stay current with all emerging trends in this rapidly changing area and adapt our own processes to reflect the current state of the art and provide our clients with the best intangible asset valuation services available anywhere.
Study for the ICVS certification by IACVA, Canada - We are one of the world's few institutes offering the International Certified Valuation Specialist certification.