Intangible Asset Valuation
Gloval possesses industry-leading expertise in the valuation of intangibles and intellectual property, which includes marketing, customer, contract and technology-related properties.
Investors, lenders, analysts and other stakeholders are getting increasingly alert to the importance and valuation of Intangible Assets. The importance of valuing intangible assets arises from the fact that the reported net worth of businesses may not represent its true value, which more often is in the form of intangibles. This is evident from the gap between company’s book value and market value on stock exchanges/ transaction value in M&A transaction. Also, Ind AS 38 require impairment assessment of intangibles asset on an annual basis and whenever there is an indication that the intangible asset is impaired.
Companies require intellectual property valuation for numerous critical reasons, including pricing and strategic purposes, to secure financing or for tax compliance.
Types of Intangible Assets
- Goodwill: It is the type of intangible asset recognized when one business acquires another business. It reflects the business reputation of a company.
- Franchise Agreements: They grant the legal right to a business to operate using the name of another company or sell a product/service developed by another company.
- Patents: They grant a business the exclusive right to manufacture, sell, or use a specific invention. This patent can either be purchased from another company or can be received for a new product invented by the company.
- Copyrights: They grant an extensive right to the business to reproduce and sell a software, book, journal, magazine, etc. It secures legal protection by preventing other from reproducing or publishing the author’s work.
- Trademarks: They legally prevent others from using a business’s name, logo or other branding items.


Intellectual Valuation includes
- Business combinations
- Collateral/insurance valuation
- In-process research and development
- Financial reporting and tax valuation
- Discount rate calculations
- Defensive asset valuation