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Intangible Asset Valuation

Reasons to value intangible assets include license negotiation, transaction pricing analysis, regulatory compliance, financial and tax reporting, purchase price allocations and dispute resolution.   We have extensive experience in the valuation of all of the following types of intangible assets:

Marketing-Related Intangible Assets

  1. Newspaper mastheads
  2. Trademarks, trade names, service marks, collective marks and certification marks
  3. Trade dress (unique color, shape, package design)
  4. Internet domain names
  5. Noncompetition agreements

Customer-Related Intangible Assets

  1. Customer lists
  2. Customer contracts and related customer relationships
  3. Noncontractual customer relationships
  4. Order or production backlogs

Technology-Based Intangible Assets

  1. Patented or copyrighted software
  2. Computer software and mask works
  3. Unpatented technology
  4. Databases, including title plants
  5. Trade secrets, such as secret formulas, processes and recipes

Contract-Based Intangible Assets

  1. License, royalty and standstill agreements
  2. Advertising, construction, management, service or supply contracts
  3. Lease agreements (whether the acquiree is the lessee or the lessor)
  4. Construction permits
  5. Operating and broadcast rights
  6. Franchise agreements
  7. Use rights such as drilling, water, air, timber, cutting and route authorities
  8. Servicing contracts such as mortgage servicing contracts
  9. Employment contracts

To speak with an experienced intangible asset valuation specialist:

For tax reporting purposes, Section 197 of the Internal Revenue Code specifies which purchased intangible assets that are subject to a statutory 15-year amortization period:

  1. Goodwill
  2. Going concern value
  3. Workforce in place
  4. Business books and records, operating systems, or any other information base
  5. Any patent, copyright, formula, process, design, pattern, know-how, format or other similar item
  6. Any customer-based intangible
  7. Any supplier-based intangible, and any other similar item
  8. Any license, permit, or other right granted by a governmental unit or agency or instrumentality thereof
  9. Any covenant not to compete entered into in connection with an acquisition of a trade or business
  10. Any franchise, trademark, or trade name

Intangible asset valuations are frequently required in the health care industry for the following reasons:

  1. Intellectual property comprises the majority of the value of medical treatments, devices and drugs in development.
  2. Transactions between for-profit entities (physicians, drug developers) and not-for-profit entities (hospitals, universities) are subject to several regulations that require such transactions prices are at fair market value and exclude compensation for goodwill or patient referrals.
  3. Healthcare-related intangible asset owners must actively defend against infringement, misappropriation, diversion, other torts, and breach of contract.

The experienced healthcare valuation specialists at New Value have prepared numerous valuations of medical practices, physician non-compete agreements, pharmaceutical companies, drugs in development, distribution rights, medical devices, and treatment technologies.