What is IP Valuation?

As business environments are influenced by tougher competition from the New Economies as well as market realities as open innovation, shorter product life cycles and the like, companies are becoming increasingly dependent on their intellectual properties or intangible assets. As a result, strategic decisions are dependent on understanding the economics affecting the value of these properties.

What does an IP Valuation Expert  do?

A IP valuation expert is a valuation services professional assisting clients in valuing a company’s IPRs (intangible assets) and in developing and implementing strategies and processes for managing IP portfolios. He consults his client on a wide variety of engagements involving IP valuation and e.g. determining economic damages in commercial litigation, or valuation of IP for a range of business dealings like investments or divestitures.

What skills are required?

The valuation of IP has become a necessary business skill, particularly in M&A transactions where management may require determination of how much of the purchase price should be attributable to intangible assets. The expert should be knowledgeable on all valuation methods discounted cash flow models , decision tree analysis, etc.  The Expert knows how to deal with data regarding three variables: expected cash flow, time horizon and discount rates.