Valuation of Intangible Assets Valuation of Intangible Assets Valuation of Intangible Assets Valuation of Intangible Assets Valuation of Intangible Assets

We offer professional support in the area of the valuation of intangibles. In addition to valuations of respective categories of intangible assets we carry out the purchase price allocations in acquisition transactions, including estimations of goodwil.

Intangibles - e.g. trading names, trademarks, brand names, patents, licenses, know-how, the author's intellectual rights - can appear in all dimensions of business activity: distribution, financial services, sales and management. Usually, intangibles generate added value that exceeds the costs attributed to them and they cannot be replaced in a short time. Generally, the intangibles contribute to the growth of sales or the reduction of costs, and consequently they raise and enhance the value of the business.

The valuation of intangibles exhibits many similarities to business appraisal. Three traditional approaches are used in the valuation of intangibles: income, cost and market. Taking into account the frequent lack of market data, the valuation of intangibles is usually limited to two approaches: cost (sometimes limited by access to historical data) and income.

A general profile of the three universally accepted approaches to the appraisal of intangibles:

The market approach (comparative) - the value of intangibles is estimated on the basis of comparable market transactions. As the intangibles are rather seldom sold separately from the enterprise itself and it is hard is to find comparable assets being traded on an active market, use of this method is possible in practice only in limited cases.

The cost approach - the value of intangibles is estimated as the cost necessary to produce the asset or replace it.

The income approach - the income approach takes into consideration potential revenues, expenses, profitability and investment expenditures related to the appraised intangible asset. This approach estimates the value of an intangible asset as the present value or capitalization of future cash flows, sales or saved costs over the period of the economic life of the intangible asset.

The income approach is perceived as the basic approach in the valuation of intangibles in the majority of cases. The income approach can take various methods depending on the unique character of the appraisal process of the intangible. The main income methods are as follows:

  • Relief from royalties method
  • Excess rate of return method
  • Postulated loss of income method
  • Discounted cash flow approach

20
years
The team members have had over 20 years of experience in advisory projects for our clients

100
valuations
We have carried out over 100 business and intangible asset appraisals to serve our clients

1st
expert
The first specialist in Poland of the American Society of Appraisers manages our advisory team

Cann Advisory Offer



Business Valuation

We are specialists in performing valuations of entire businesses, organised business units, majority and minority shareholdings, investment projects as well as valuations...

Valuation of Intangible Assets

We offer professional support in the area of the valuation of intangibles. Intangibles - e.g. trading names, trademarks, brand names, patents, licenses, know-how...

Impairment of Assets

We support our customers in carrying out impairment tests on assets. The impairment of assets is the subject of International Accounting Standard...

Financial Advisory in Business Litigation

We prepare opinions on the value of business damages for the purpose of business litigation.

Energy sector advisory

ENERGYCANN is a team of practitioners specializing in advisory services for energy sector entities.

Acquisition Advisory

During your acquisition process we offer you total dedication, full committment, flexibility and deep market knowledge to identify deal breakers...

Divestiture Advisory

We are ready to become your lead financial advisor organising a competitive sales process by providing a superior execution, focused and timely sales process...

Due Diligence

A due diligence is an essential step during an acquisition process. It analyses the key drivers and core functioning of an enterprise.

Capital Raising

We are able to support you in the search for additional capital for your business. Our contacts, experience and capabilities will help you with sourcing additional financing...

Contact

Cann Advisory sp. z o.o. sp. k.
Plac Jana Henryka Dąbrowskiego 1
00-057 Warszawa

tel. +48 22 616 20 32

info@cann.pl

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Valuation of Intangible Assets