In the new economy, intangible assets and intellectual property are often the most valuable elements of companies.
The valuation of intangible assets can be important for tax purposes, wealth management, M&A operations, , commercial transactions, licences, or strategic decision-making.
We have experience in the valuation of:
- Know how
- Client portfolios
- Non-competition agreements
The valuation of intangible assets requires a deep understanding of the company and its main value drivers.
IP assessments carried out by Valuer are backed by exhaustive analysis and the use of the most recognized methodologies.
Measure what can be measured, and make measurable what cannot be measured.
Purchase price allocation
The currently accepted accounting standards, such as the International Financial Reporting Standards (IFRS), require employing the purchase price allocation method for any type of business combination deal, including both mergers and acquisitions.
Purchase price allocation is a practice in which an acquirer allocates the purchase price into the assets and liabilities of the target company acquired in a transaction. The allocation of the purchase price under IFRS 3 requires a careful analysis of the transaction and the use of appropriate techniques for the valuation of the businesses and their underlying assets (tangible and intangible).
Goodwill is calculated as a difference between the purchase price and the total fair market value of assets and liabilities of an acquired company. From an acquirer’s perspective, goodwill is critical in its accounting reporting because both US GAAP and IFRS require a company to re-evaluate all recorded goodwill at least once a year and record impairment adjustments if necessary.