IP & Intangible Asset Valuation for Licensing, Litigation, and Transactions

The assets that drive the most value are the hardest to value.

In today's economy, the most valuable assets on a company's balance sheet often aren't on the balance sheet at all. Patents, customer relationships, brand equity, trade secrets, and proprietary technology drive enterprise value, but quantifying that value requires methods, precedent, and judgment that most generalist firms lack. W&A has built its practice around exactly that challenge.

Intangible Asset Types

Patents, trade secrets, and proprietary technology
Trademarks, trade names, and brand equity
Customer relationships and contract backlogs
Noncompete agreements and employment contracts
Copyrights and creative works
Assembled workforce and organizational knowledge
Franchise agreements and licensing arrangements

Valuation Methods

Intangible assets require highly specialized methodologies. We regularly apply:

Relief-from-Royalty Method

Values an asset based on the hypothetical royalty payments that are saved by owning the asset rather than licensing it from a third party.

Multi-Period Excess Earnings Method (MPEEM)

Isolates the cash flows attributable specifically to the intangible asset being valued, deducting appropriate contributory asset charges.

Cost Approach

Estimates value based on the cost to recreate or replace the intangible asset with an asset of comparable utility.

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