Determining the value of Intellectual Property

Intellectual Property (IP) assets may not appear on a balance sheet but some businesses rely on their IP assets every day. In modern day businesses it is becoming increasingly crucial to protect IP.

Individuals are becoming more aware of the worth and value of the IP assets within their business and are taking steps to ensure that the rights to the asset are safeguarded.

The uses of Intellectual Property

Significant value often attaches to IP assets and this can offer strategic advantages to business owners as they may be able to use the IP assets in their business for the following:

  • As security against borrowings;
  • To earn income from royalties attaching to certain IP assets;
  • To sell certain IP assets for capital gain.

However, before any of the above can happen, the suite of IP assets that a business owns needs to be identified to enable strategic planning for those assets.

Typical types of Intellectual Property

Typical types of IP assets can include the following:

  • Goodwill
  • Brands or trademarks
  • Customer lists or databases
  • Patents
  • Websites
  • Product ranges
  • Employee know-how
  • Certain processes within the organisation

Summary of our services

Attaching a value to an IP asset is not straight forward and traditional valuation methods often fall short.  At HW Forensic Accountants we have experience of valuing IP assets whether it is part of a full business valuation or the valuation of an individual asset.  Working in line with ISO 10668 ‘Brand Valuations’ we ensure that best practice methods are adhered to.

The identification of IP assets within a business is also something that we undertake to ensure that business owners take appropriate steps to safeguard their IP.

If you would like to discuss how we can help or for more information please contact your local office.

If you would like to discuss how we can help or for more information please contact your local office.