Valuation

Valuation of intangible assets

Intangible assets often make up a very large part of a company’s value. Therefore, there can be many reasons to evaluate them.

Trademarks, designs and other intangible property rights and assets in a company are often more valuable than their inventories.

The company’s intangible assets are their most valuable asset and can be used to provide financing for the company’s growth.

Valuation of intangibles

Getting an accurate estimate of your intangible assets is not always easy. How much does a brand cost after years of marketing? Does your patent protect a technical solution where there is a good market base or is the invention superfluous? A well-known trademark or strong patent can be the true core of a company.

The value of intangible assets may change over time. For example, a patent may protect a unique solution, but over time, other solutions may emerge that reduce the value of your patent.

Trademarks usually increase in value as they become more famous.

The value of intangible property rights depends on the circumstances of the time and place. It is important to analyze intangible property rights based on their use, market and competitors.

The assessment of intangible property rights shows whether a right is necessary or not. It also enables the holder to develop a coherent strategy and the assessment focuses on the purpose of the intangible property right.

 

Different evaluation methods

There are various methods for valuing intangible assets. All methods have their advantages and disadvantages and it is difficult to find a method that is universal and works in all situations.

The cost method

The market value method

The method of income or economic benefit

Valuable trademark with ISO 10668