Intangible assets and intellectual property (IP) require unique expertise. They are a class of asset that can easily be incorrectly handled.
Patents, brands, artistic copyrights—these can often mean the difference of millions or even billions of dollars in the valuation of a company. Particularly in innovation-driven sectors such as high tech or life sciences, intangible assets can make up the majority of a company’s assets.
Dealing with intangibles requires both proven valuation methodologies plus a lot of experienced-based judgment. You’ve got to have the analytic expertise to convert intangible assets into monetized value. Our experts are very often able to recognize hidden value, measure it accurately and then report it objectively where others might lack the experience with intangibles to do so.
Expertise with intangible assets is crucial in providing independent reports to decision-makers and interested third parties such as buyers, investors and lenders.
Examples of Intangible Assets:
Trademarks, trade/brand names, service marks, logos and non-compete agreements are all market-related intangible assets.
Customer contracts and relationships, customer lists, databases, open purchase orders, distributors and sales routes are intangible assets which can greatly increase the value of a company.
Franchise and licensing agreements, permits, contracts and supplier contracts are other intangible assets which are often overlooked.
Process and product patents, patent applications, proprietary processes and technology, engineering drawings, technical documentation, computer software and copyrights, formulas and recipes can make all the difference in the world in valuing a company. Within the innovation-based economy, these are the assets of a company and must be dealt with properly.
Musical composition, literary composition and film copyrights are all intellectual property which has value and should be carefully appraised in any valuation.
In addition, BVC frequently values the following intangible assets: