“If this business were split up, I would give you the land and bricks and mortar, and I would take the brands and trademarks, and I would fare better than you.” — John Stuart, Chairman of Quaker.
Brand today is undoubtedly one of the most valuable assets of an Organisation and has certainly come a long way from the time when it was merely considered as just another word or Logo. The Brands have huge economic impact due to their capability to influence the choices of customers, employees, investors and government authorities.
In today’s world with rapid progression and advancement in technology, there is dramatic shift in the good and services being offered by companies with greater reliance on artificial intelligence, digitalization and data services. The onset of COVID Pandemic (2020) accelerated digital transformation with large number of companies providing as well as getting benefitted with cloud-based tech and streaming services. The Companies, are now investing more and more into intangible assets like technology, software, customers and brands, in addition to physical assets and property, plant and equipment. Intangible Assets also results in higher profits and exponential growth of businesses and companies and thereby increasing their ROCE resulting in enhanced profitability and better cash flows.
Investors, lenders and other stakeholders are getting increasingly alert to the importance and valuation of Intangible Assets. Understanding and appreciating Intangible Assets, Lenders are now giving out loan funds against Intangible assets as a collateral, thereby increasing the requirement of Valuation of Intangible Assets.
Intangible assets can be classified in majorly 5 categories i.e.
Brand, Trademarks, Trade names, Internet domain names, Non-Compete Agreements
Customer lists, Backlog, Customer contracts
Plays, books, films and music, etc.
Licensing and royalty agreements, Service or supply contracts, Lease agreements, Permits, Broadcast rights, Servicing contracts, Employment contracts and Non-Compete agreements and Natural Resource rights
Patents, Softwares, unpatented tech., Databases etc.
The Valuation methodologies for each of the intangible asset vary from the other.
Transique Valuation Advisors has the expertise to help clients estimate and assign the value to their Intangible assets using suitable valuation approaches and methodologies which are globally recognized, after adequate analysis and following our proprietary processes.
We can help you in: