Substantial value is associated with intellectual property and intangible assets such as patents, trademarks, brand names, non-compete agreements, and technological know-how. Typically, intangible assets are categorized as follows:
- Marketing related – trademarks, patents, brand names
- Technology related – proprietary technology, technical expertise
- Contract related – non-compete agreements, licenses
- Human capital related – skilled workforce, workforce in place
- Customer related – customer and referral relationships
- Computer related – software, development tools
- Goodwill related – going-concern and synergistic value
PAG’s professionals have extensive experience valuing intangible assets for the following purposes:
- Transactions – for the sale, purchase, or license of the intangible asset, purchase price allocation (ASC 805), and assessment of business value
- Financial Reporting – for purchase price allocation (ASC 805) and goodwill impairment testing (ASC 350).
- Financing – to securitize or collateralize asset-based lending or cash flow lending.
- Taxation – to comply with regulations regarding intangible asset amortization deductions, abandonment loss deductions, intangible asset transfer, charitable giving, and federal and estate tax planning
- Bankruptcy – to value an estate in bankruptcy, debtor-in-possession financing, refinancing, and restructuring.
- Litigation – to support value in infringement, fraud, lender liability, breach of contract and divorce cases
- Management planning – to support and aid in general strategic planning
Intangible asset valuation is a detailed process requiring the complete understanding of a business and the intangible assets’ impact on the business. Understanding the market forces creating intangible value enhances financial decision making and provides financial reporting consistency.
The professionals at PAG are experts in performing intangible asset valuation.