Intellectual property is an extremely valuable asset. However, few people realise that intellectual property such as copyrights, trademarks, patents, and even trade secrets can be significant personal or corporate assets. The truth is that, not only are they valuable, but they might also be sought after by other companies or individuals. Many owners of intellectual property who want to sell their asset are unsure how much to charge. Unlike tangible assets like houses and investments, intellectual property does not have an obvious Rand value. For this reason, it needs to undergo a valuation in order to have a Rand value assigned.
Multiples valuation methods are used to assign monetary value to intellectual property for several reasons. First, the concept of intellectual property can be vague. What one may think their patent is worth might actually be seen to be far less valuable by others. Second, due to the vague nature of intellectual property, it’s best to have several different valuations on which to base a price estimate. The calculated value of a piece of intellectual property is typically found by taking the average of several valuations. The most common valuation methods include market price, replication cost, transfer of loyalty, and reduced cash flows.
It’s crucial to have a valuation for your intellectual property. Otherwise, you may end up getting scammed or paid far less than you are due. Not only that, but it’s always helpful to know just how much your patent or trade secret is worth. Assets like these can be appreciated by the owner or sold to the highest bidder. If you are in need of a valuation, remember that when it comes to intellectual property valuations, accountants are the most experienced professionals available to assist.