Intellectual property commonly represents one of the largest asset classes that a company holds, and unlocking its value is a key element in properly determining the true value of your business and to capitalise on hidden assets. IP-Valuation is the precursor to monetising your intangibles.
The value of your IP (copyrights, trademarks, brands, databases, trade secrets, patents, etc.) can be valued using a number of methodologies, such as (1) cost-based valuation; (2) income-based or economic benefit valuation; and (3) market-based valuation.
The IP-Valuation process includes:
1. Proper classification of IP assets through an IP audit;
2. Determination of current or required IP protection; and
3. Methodology valuation of the IP assets.
Once completed, the company will have completed the proper due diligence to record its IP assets on the company’s balance sheet.