Intangible assets valuation

Due to its interdisciplinary character and frequent significance to a company’s strategic decisions, the process of valuation of business entities requires broad but in-depth knowledge of finance and economics, and extensive experience not only in the financial market but also mostly in business. 

In the new economic reality, where all kinds of intangible intellectual property is more and more important to a company’s general property, intangible assets have dynamically gained in significance. A similar situation can be seen in the role of the credible methods and tools used to valuate intangible and legal assets.

In modern business, a company’s functioning is to a large extent based on knowledge and information. This allows us to clearly indicate objects (trades), the functioning of which is mostly based on the intangible assets created. It is particularly important in the case of such entities to reliably evaluate assets that are highly variable in time (which is often even impossible to determine).

Bearing this in mind, when we evaluate intangible assets, we ensure the highest degree of care and always treat the representation of our Clients’ interests as the top priority.

As part of the valuation of intangible and legal assets we:

• Valuate product brands, corporate brands, distribution network brands,
• Valuate patents, licences, long-term contracts,
• Valuate know-how, research and development, and other intellectual property,
• Perform impairment tests (in accordance with IAS 36).

Depending on the kinds of intangible and legal assets, the aim of the valuation and applicable regulations, we perform the valuation of such assets using either the income, cost or market approach. 

Income approach

In the case of this approach, two basic valuation methods can be distinguished:

• Capitalisation of licence fees – based on an estimated hypothetical value of future licence fees that a brand user would have to pay for usage of the brand;
• Excess return – the valuation of future cash flow as a result only of the given intangible asset possessed.

Cost approach

The basic assumption of this approach is the belief that the value of a given asset is comparable to the current cost of its replacement.

Market approach

In the case of this approach, the determinant of value is the value of market transactions, the object of which are comparable intangible assets. 

We provide Valuation and other services throughout Poland in regional offices in Warsaw, Łódź and Poznań, Opole, Wrocław, Katowice, Lublin, Gdańsk and Zielona Góra.