Intangible Assets
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- Valuation of Brands, Goodwill, Trademark, Copyright, Patents, Other Intangible Assets & Intellectual Property
The book value of a company’s intangible assets is subtracted from its market value to determine its true value. The basic goal of valuing intangible assets is to determine the amount of economic advantage that can be quantified.
IP valuation is a method of determining the worth of intellectual property assets such as patents, trademarks, and copyrights. IP licensing agreements, joint ventures, litigation support, tax planning, and compliance, transfer pricing are just a few of the reasons why IP valuations are used.
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- Valuation for Financial Reporting, Fairness Opinion, Purchase Price Allocation (PPA) for (M&A)
Financial Reporting of Intangible Assets – Purchases of intangible assets are recorded at fair value if there are no business combinations. When a bundle of intangible assets is purchased, the purchase price is assigned to each asset based on its fair market value.
Fairness Opinion – This opinion is based on extensive financial analysis to determine whether the transaction is fair to the company’s shareholders.
Purchase Price Allocation for M&A – Purchase Price Allocation is a key component of an M&A transaction that allows the value of the purchase consideration to be distributed among various tangible and intangible assets acquired from the target following the M&A.
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- Impairment Studies of Intangible Assets
When an intangible asset is judged less valuable than it appears on the balance sheet after amortization, it is called impairment. The asset is considered impaired when its fair value is less than its present value. The discrepancy between fair value and current value is treated as an impairment charge in this
situation.