IP Valuation: Assessment of the value of IP and business assets in a commercial context
IP valuation from early-stage technologies to established companies
Intellectual property valuation requires an understanding of both the scope of the intellectual property and the business sector(s) in which the asset could be exploited. Our expert team have previously undertaken valuations in their positions in investment management, and in- and out-licensing.
We undertake financial valuations for all types of IP (including patents, design rights, trademarks, copyright, software, trade secrets and know-how), from early-stage research through to businesses with established income streams.
In building a valuation, we incorporate elements of our other services, to evaluate the opportunities and competition, understand the market and surrounding intellectual property landscape, and bring specific commercial intelligence of the relevant market sector. Typically, our valuations use a risk-adjusted Net Present Value calculation, supplemented by comparative market information and a cost-based approach where appropriate.
Rapid access to supporting information
We subscribe to market research and deal databases, which allow us to quickly compile the raw data which inform the assumptions underlying our valuation calculations.
Valuation can be a useful tool in many situations. The approach taken, and the level of background research needed to produce a useful value will depend on the use to which the valuation will be put. In many cases, the important outcome is not so much the value itself, as the understanding that can be gained into the risks and unknown factors which have the biggest effect on the final valuation.
- For investment companies who wish to purchase IP assets
- For companies who want to raise investment
- When spinning-out or starting-up a company
- To inform internal investment decisions by understanding the size of the potential opportunity and areas of risk and uncertainty
- For early stage technologies as part of the process of identifying appropriate commercial licensing terms
- Valuation of pharmaceutical products in clinical development and/or on the market for royalty buy out purposes
- During mergers and acquisitions
Internal business support
- To support portfolio optimisation
- When acquiring other IP assets
- Use of intellectual property as collateral
- When transferring IP assets in commercial transactions
- For tax purposes between cross-border affiliates, or for corporate restructuring
- To correctly assign value to intangible balance sheet assets