Intangible assets valuation — managing intellectual capital
In the modern economy, a company’s success is often driven not by its buildings, but by intangible assets. These are non-physical assets that grant exclusive rights and create significant competitive advantages.
Why is valuation important?
Proper identification and valuation of intangible assets is essential to reflect a company’s true potential on its balance sheet. This process is critical for:
- Brand capitalisation: converting trademarks and reputation (goodwill) into measurable value.
- IP protection: understanding the real value of patents and copyrights.
- Licensing & franchising: setting fair contract and royalty terms.
- Attracting investment: especially for tech startups where software is the main value driver.
How intangible assets are valued
A comprehensive analysis that goes beyond simple numbers is used. The valuation considers:
- Future earnings potential: expected income generated by the asset.
- Market environment: industry trends and competitive landscape.
- Legal aspects: license terms, patent protection level and regulations.
- Historical costs: resources spent on creation and development.
What is valued
The service covers valuation of:
- Branding: trademarks/brands and goodwill.
- Technology: software, patents and proprietary technologies.
- Rights & licenses: franchises, copyrights and extraction rights.
- Contract-based assets: customer lists and other exclusive contractual rights.
Frequently Asked Questions about Intangible Assets Valuation
What are intangible assets?
Intangible assets are non-physical but economically valuable items: brands, patents, licences, software and goodwill.
Can goodwill be valued?
Yes — goodwill (business reputation and name) is measurable using IVS methods and should be reflected in the balance sheet.
Who requires intangible asset valuation?
Investors, M&A parties, banks, courts and startups.
Can software be valued?
Yes, software products, databases and technology solutions are valued.