Valuation of intangibles
December 14, 2024
We provide premier-quality data for valuation purposes to industry-leading multinational enterprises, global consulting companies, international law firms, government authorities and universities.
The quality of RoyaltyRange data allows for the application of various valuation techniques that are utilized by valuation professionals. The fully analyzed, clean, structured and manually prepared data allows these professionals to perform an analysis in a matter of hours. The data is fully compliant with the latest OECD BEPS guidance.
How can you access data for the valuation of intangibles?
Please select one of these subscription plans commonly used by valuation professionals:
What are the main features?
- High-quality data that is fully compliant with the OECD BEPS requirements.
- Each agreement is manually analyzed for more than 50 comparability factors.
- Includes detailed functional, risk, cost and asset analysis.
- Detailed manually prepared summaries of the agreement terms and comparability factors.
- Fully analyzed, clean, structured and manually prepared data for each agreement.
- An easy-to-perform analysis that can be completed in a matter of hours.
Why is our data so special?
Intangibles or rights in intangibles can have specific features that complicate the search for comparables and, in some cases, make it difficult to determine the value of an intangible at the time of a transaction.
RoyaltyRange data covers the features and comparability factors that are relevant for the valuation of intangibles. Please see the below extracts of actual royalty reports from our:
- Restrictions and specific features
- Limitations
- Functional, risk, cost and asset analysis
Why is the data so important?
When the value of an intangible, or rights in an intangible, is highly uncertain at the time of the transaction, the question arises as to how pricing should be determined. The question should be resolved by referring to what independent enterprises would have done, in comparable circumstances, to take account of the valuation uncertainty in the pricing of the transaction. Where reliable comparable uncontrolled transactions can be identified, the respective method can be applied to determine the conditions for the transfer of an intangible or rights in an intangible. When such a valuation method is utilized, particular consideration must be given to the comparability of the intangibles or rights in intangibles that are being transferred, and the economically relevant characteristics or comparability factors should be considered.
Comparability, and the possibility of making comparability adjustments, is especially important when considering potentially comparable intangibles and related royalty rates drawn from commercial databases or proprietary compilations of publicly available license or similar agreements. It is important to assess whether publicly available data drawn from commercial databases and proprietary compilations is sufficiently detailed to permit an evaluation of the specific features of intangibles that may be important when conducting a comparability analysis (para. 6.130, Action 8–10, OECD BEPS).
It is possible to find comparables
It should be recognized that, though the identification of reliable comparables in many cases involving intangibles can be difficult, it is certainly possible with premier-quality RoyaltyRange data. Please try our data and request one of our services.
