We know that in order to sell or buy an asset, it is important to value it first. This way, its real price can be learned. Advice from a professional is fundamental at all times during this process.
> You may be interested in our entry: Why is it necessary to conduct an appraisal?
As well as there are appraisals for tangible assets, intangible assets can also be valued. An important value of these assets for the company include the trademark, concessions, franchises, patents, industrial property, royalties, customer portfolio, cutting-edge technology, software design, among others. All of these distinguish the company and achieve to position it as market leader.
These intangible assets can be bought, sold, rented or licensed, and are subjected to private property rights.
What are the benefits of appraising intangible assets?
One of the main benefits of carrying out this type of appraisal is identifying the income and expenses of the company in order to learn about its current position and understand its competitive advantage.
Other benefits include:
● Easing the process of buying or selling the company.
● Direct increase in equities.
Occasionally, the name of the company may be even more valuable than its infrastructure due to its influence in the market. A broker is responsible for determining such value. Intangible assets can be used as security for a loan.
Some intangible assets can be identified as:
● Commercial:
○ Trademarks
○ Brand image
○ Websites
● Intellectual or artistic-related:
○ Plays
○ Books
○ Paintings, photographs
○ Magazines, newspapers
● Customer-related:
○ Client lists
○ Customer contracts
The approaches used to value trademarks and patents include:
● Cost approach
● Market approach
● Income approach
The person responsible of carrying out the appraisal can choose any of the aforesaid methods depending on the objective. Over 100 intangible assets are currently recognized and divided into various categories.
If you are thinking about valuing your intangible assets, do not forget to resort to a professional on the matter. Now you know that by doing this you can obtain great benefits and a better understanding of the value of your company for future decisions. At QuAdrans Law and Finance we offer the Brokerage service to provide you with the best advice.
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Legal and Accounting Consulting in Playa del Carmen
