Our professionals have been valuing intellectual property and other intangible assets for more than 35 years. Initially, the valuations were completed for tax purposes. Now intangible-asset valuations are often required for financial reporting purposes as well as tax purposes.
Accounting Standards Codification (ASC) 805 (formerly SFAS No. 141), identifies categories of intangible assets to be recognized apart from goodwill. The categories are marketing-related, customer-related, artistic-related, contract-based, and technology-based.
Identifying and valuing intangible assets in advance of a purchase has become a necessary step in the due diligence process. Companies should make acquisitions only after evaluating the effect that the amortization of intangible assets will have on future earnings. Our pre-acquisition valuations have frequently been used as evidence to show whether an acquisition will be accretive.