Intellectual property (IP), the exclusive rights held by an inventor or a producer of creative work, can be among the most valuable assets of a corporation. IP can include patents, trademarks, trade secrets, copyrights and other assets such as rights of publicity. The need for an independent valuation of IP can be driven by a variety of transactions and other situations:
- Mergers & acquisitions
- Negotiations of licenses
- Divestitures, spin-offs
- Bankruptcies and restructurings
- Collateral for financing
- Transfer pricing
- Financial reporting, tax planning and other compliance needs
Companies that effectively manage, protect and leverage their intellectual property often finish far ahead of their competitors in creating new revenue streams and enhancing returns to shareholders.
We have completed thousands of IP engagements for accounting and finance teams, corporate boards, managers, shareholders, creditors and advisers.
Our professionals are leaders in valuing a wide variety of intangible assets including but not limited to:
- Patents, Trade Secrets & Product Technology. Diagnostic tests, drug compounds, medical devices, production/industrial processes, scientific equipment, semiconductors and semiconductor equipment and telecommunications equipment.
- Copyrights & Content. Literary, film, musical and other works and libraries.
- Franchise Agreements.
- Licenses & Royalty Agreements.
- Non-Competition Agreements.
- Product Brands, Trademarks and Trade Names. Consumer product brands, publishing mastheads, retailer trade names.
- Software. Patented, unpatented and copyrighted.
VRC has helped define accounting standards around the valuation of customer-related assets.
VRC is frequently engaged to value IP and other intangible assets in connection with mergers or acquisition business combinations under the provisions of Accounting Standards Codification 805 (ASC 805) and asset acquisitions under ASC 350. Acquired intangible assets can be broadly categorized as:
Clients rely on our deep industry and practice area expertise to navigate the complexities of intangible asset valuation. Selection and application of appropriate valuation methodologies require an understanding of the constantly evolving best practices in intangible valuations and increasing regulatory scrutiny corporations and boards face in supporting these valuation measurements.
VRC senior professionals are instrumental in developing best practices for the valuation of intangible assets and IP through participation in valuation professional organizations and working groups.
Increasingly, valuation of IP and other intangible assets is necessary for pre-transaction due diligence for companies evaluating the impact of intangible asset amortization on earnings, structuring deals or determining the value of a target. VRC provides numerous pre-acquisition valuations of IP and other acquired assets to assist management, deal teams and corporate boards.