Intangible Asset Valuation Services
Unlock the hidden value of your Intellectual Property, Brand Equity, and Proprietary Technology. Expert valuation reports for Ind-AS compliance, M&A, and Litigation by IBBI Registered Valuers.
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What is an Intangible Asset Valuation?
Intangible Asset Valuation is the process of defining the economic value of non-physical assets that drive a company’s competitive advantage. In the modern knowledge economy, the "book value" of physical assets often represents only a fraction of a company’s true worth; the real value is stored in Trademarks, Patents, Software, and Customer Relationships.
At Biz Valuations, we specialize in identifying and valuing these "invisible" drivers of success. Whether you are performing a Purchase Price Allocation (PPA) after an acquisition or looking to license your technology, we provide rigorous, defensible valuations that stand up to regulatory and auditor scrutiny.
Why You Need an Intangible Asset Valuation?
Identifying the specific value of intangibles is a critical requirement for financial reporting and strategic decision-making. We provide specialized reports for:
Purchase Price Allocation
Complying with Ind-AS 103 / IFRS 3 by allocating the acquisition price to identifiable intangible assets and goodwill.
Impairment Testing
Conducting annual reviews under Ind-AS 36 to ensure the carrying value of intangibles like Goodwill and Brands remains justified.
Fundraising
Showcasing the value of proprietary technology or brand power to investors to justify a higher valuation premium.
Licensing & Royalties
Determining fair royalty rates for the inter-company transfer or third-party licensing of Intellectual Property (IP).
Litigation & Infringement
Quantifying economic damages in cases of patent or trademark infringement and trade secret theft.
Who Needs Intangible Valuation Services?
Specialized Solutions for IP-Driven Entities
Our team provides specialized valuation services across various stakeholders:
Key Benefits of Working with Biz Valuations
Choosing an expert for intangible assets is very important because these assets lack an active market and require sophisticated modeling.
Intangible Assets We Value
We provide valuation for a wide spectrum of intangible assets, categorized as:
Our Valuation Methodologies
We utilize globally recognized approaches customized to the specific nature of the intangible asset:
Income Approach (Relief from Royalty)
Commonly used for Brands and Patents. We calculate the value based on the royalty payments you are "relieved" from paying because you own the asset.
Income Approach (Multi-Period Excess Earnings - MPEEM)
Used for primary assets like customer relationships. It isolates the cash flows attributable solely to that specific asset.
Cost Approach (Replacement Cost)
Used for software or databases where the value is derived from the cost to recreate a similar asset of equal utility.
Market Approach
Where we compare the asset to similar third-party licensing deals or IP sales in the open market.
Regulatory Compliance & Standards
Our practices apply to the most stringent global and domestic frameworks:
- Ind-AS 103 & 38: Mandatory standards for Business Combinations and Intangible Asset accounting in India.
- Income Tax Act: Valuation for "slump sales" and transfer of IP between group companies to ensure Arm's Length Pricing.
- Insolvency & Bankruptcy Code (IBC): Valuing IP assets of distressed companies to maximize recovery for creditors.
- Transfer Pricing (OECD Guidelines): Justifying royalty rates for cross-border IP transfers (BEPS compliance).
Our 4-Step IP Valuation Roadmap
1. Identification
We conduct an "IP Audit" to identify all identifiable intangible assets that meet the recognition criteria.
2. Economic Life Assessment
We determine the Remaining Useful Life (RUL) based on legal protection and technological obsolescence.
3. Financial Modeling
We apply MPEEM, Relief from Royalty, or Cost-to-Recreate models to calculate the specific value.
4. Final Report
We provide a complete report detailing the methodology, discount rates (WACC/WARA), and the final value conclusion.
Specialized Intangible Services
Standard business valuations often overlook the nuance of IP. We provide high-level technical analysis:
Brand Valuation
We analyze brand strength, market share, and loyalty to put a dollar value on your corporate identity.
Software & IP Valuation
Technical assessment of "cost-to-build" vs. "economic benefit" for proprietary platforms and SaaS products.
Non-Compete Agreements
Valuing the economic impact of a key executive or seller agreeing not to compete in a specific geography.
Goodwill Impairment
Providing a "Step 1" and "Step 2" analysis to determine if the carrying value of goodwill exceeds its implied fair value.
Frequently Asked Questions
1What is the difference between Goodwill and Intangible Assets?
Intangible assets (like a patent) are specifically identifiable and can be sold separately. Goodwill is the "residual" value left over after all other tangible and intangible assets have been accounted for in an acquisition.
2Why do I need a valuation for Ind-AS 103?
When you acquire a company, you cannot simply record the extra price paid as "Goodwill." You are legally required to identify and value specific intangibles like brands or technology first; only the remaining balance is Goodwill.
3How do you value a brand that isn't making a profit yet?
We use the Cost Approach (investment made to build the brand) or a Market Approach based on what similar brands have sold for in the early-stage venture market.
4How long does an IP valuation take?
Because of the technical nature of IP, these valuations typically take 10 to 15 business days. We must analyze legal documents, patent filings, and market royalty databases.
5 Can you value "Software-in-Progress"?
Yes. We use a Cost-to-Recreate method, factoring in developer man-hours, overheads, and the technical complexity of the code developed to date.
6Is an IBBI Registered Valuer required for IP valuation?
Yes, if the valuation is for compliance under the Companies Act (e.g., issuing shares for IP) or the IBC, an IBBI Registered Valuer (Securities or Financial Assets) must sign the report.
7What is "Relief from Royalty"?
It is a valuation method that assumes the value of an asset is the present value of the royalty payments the owner avoids by owning the asset rather than licensing it from a third party.
8Do you provide valuations for startup "Sweat Equity"?
Yes. We value the intellectual contribution or "know-how" provided by directors or employees to determine the fair number of shares to be issued as Sweat Equity.
9Can a valuation help in an IP infringement lawsuit?
Absolutely. We provide Damage Assessment reports that calculate the lost profits or reasonable royalties the IP owner should have received, which serves as evidence in court.
10How often should intangibles be valued?
For financial reporting, Goodwill must be tested for impairment annually. For internal strategy, we recommend a review every 12 to 18 months or whenever a major market shift occurs.
Visualize the Invisible.
Value Your IP.
Your patents, trademarks, and software are the heartbeat of your company’s future. Don't let these valuable assets sit at "zero" on your balance sheet.
Partner with Biz Valuations to capture the true economic power of your intellectual property.
- Built on Experience
- Trusted Across 1,600+ Projects
- Confidence of Leading Businesses