IP valuation

IP valuation, patent valuation, software valuation

We carry out financial valuations of intellectual property (IP) rights and due diligences.

In other words, we perform an analyzis of patents, trademarks, softwares, web and mobile applications or web sites, know-how, trade secrets, to determine the financial value of these intangible assets, aka “IP valuation”.

We use different valuation methods, which are respectful of existing standards (including ISO 10668) and considering various risks and precautions. They are as follows :

  • the approach by the historical or replacement cost,
  • the market approach (analysis of similar transactions)
  • the approach by the future income.

This practice is particularly helpfull in the framework of fundraising, contribution to capital, due diligence or technology transfer.

Knowing the value of these intangible assets is a prerequisite for management excellence.
Their assessment enables, in addition to determine a value at any given time, to:

  • weigh some better investment decisions,
  • better arbitrate the resources to be allocated,
  • better negotiate co-development or operational partnerships.

The choice of the method, or a combination of those methods, depends essentially on the context (legal, economic, financial, partners, type of transaction …) and the stage of development of the products or services, directly concerned by the analyzed IP rights.

This type of assessment therefore requires a case-by-case approach, and the resulting ranges of values ​​are conditioned to specific scenarios.

In general, we realize, upstream valuation, a strategic audit of the legal protection set up around the product, process, service and associated know-how. If faults are found, we recommend our client to correct them in order to strengthen the valuation.

Then our IP rights financial valuation is based on a 360 ° analysis, taking into account the following aspects:

  • nature of the technology and its advantages compared to the prior art
  • legal and technical quality of IP or similar rights, validity and strength of these rights
  • stage of development, associated costs
  • the relevant markets, direct and indirect competition
  • the positioning of the asset in this market
  • lifetime of the asset, obsolescence
  • analysis of legal, economic, financial, human risks… resulting in a discount of the value
  • the financial perspectives according to different operating scenarios
  • the contribution of property rights in achieving the expected profits

 

Companies, beyond the study itself, we defend the estimated value by your side, in front of your audience (potential investors or partners, contribution auditor …).

International investors and funds, we carry out early due diligences in France for you. Thus, we give you our insight about a company you are interested in, to ensure it is worth to go further or not.