We specialize in the valuation of high-tech property, for a variety of purposes including capital projects, mergers and acquisitions, litigation support, investments, tax matters, and financial reporting. Our team includes seasoned engineers, finance, and accounting professionals. We have the technical capability to perform the work. Frequent writers and speakers at a national level, we have the credibility to defend our work.
Intellectual Property Valuation and Appraisal Services
Intellectual properties are generally some of the most valuable assets in the world. Few assets can command the economic income and power of intellectual properties. An auto plant, grocery store, even a coal mine, cannot provide long-term economic income like intellectual properties can.
However, many in the market do not understand how something as simple as a collection of words that represent a patent or book, the arrangement of several music notes, or a basic color scheme for a tractor could command millions or billions of dollars in value. Yet they do every day because of their uniqueness in meeting a market need.
It is really quite remarkable. There is no substitute for the therapeutic effects of Lipitor. There is no substitute for the taste of Kentucky Fried Chicken. There is no substitute for The Beatles’ Hey Jude, or Kurt Vonnegut’s Slaughterhouse Five. There is no substitute for the Tiffany’s “Blue Box.” For many valuation analysts, this distinction is difficult to comprehend, leaving them confused as to how intellectual property creates value. Oftentimes, these valuation analysts will generate an inappropriate value opinion based on this misunderstanding. For example, the cost to Pfizer for creating Lipitor pales in comparison to its value. Yet many in the valuation profession retreat to using cost approaches for IP valuations when there is no historical earnings record for an asset.
At Pellegrino & Associates, we specialize in intellectual property valuation and recognize the intrinsic value that intellectual property creates. That is a forward looking concept, not a forensic exercise. We have valued intellectual properties of every imaginable type for some of the largest companies in the world. Our experience includes assets as diverse as the publicity rights for the gunslinger John Dillinger, to the patents that make retractable stadium roofs work properly and safely for major NFL teams such as the Indianapolis Colts, the Phoenix Cardinals, and the Dallas Cowboys.
Importantly, we do not submit blindly to dogmatic valuation methods that have little theoretical or practical basis. Our valuation processes and deliverable work products demand evaluating the specific value proposition that a given intellectual property creates. By necessity, we have authored cutting edge content in the profession. Our writings go beyond the dogma. Our writings are helping to drive intellectual property valuation in new directions to bring greater clarity and precision to the intellectual property valuation space.
If you have a specific type of IP that you need valued, please take a look at our specific services, including sample projects, in the following links:
- Patent Valuation and Appraisal Services
- Copyright Valuation and Appraisal Services
- Trademark Valuation and Appraisal Services
- Trade Secret Valuation and Appraisal Services
Interested in learning more? Check out our Intellectual Property section.
Software Valuation and Appraisal Services
Software is one of the most misunderstood types of assets we value. Fundamentally, software is nothing more than a high-level abstraction that humans use to represent a predetermined way to transfer voltages in a microprocessor. This high-level abstraction makes it easy for humans to use and program computers, but quite difficult for many humans to value–especially those whose experience in software consists of using a spreadsheet or word processor.
Software’s complexity is a natural fit for Pellegrino & Associates. Its founder and several of its associates have undergraduate degrees in computer science or electrical engineering. So we understand how software works and, most importantly, how to value it properly.
Pellegrino & Associates performs two types of software valuations: embedded software valuations and general software valuations. Clients typically use our embedded software appraisal services to restructure assets for personal property tax reporting purposes. Clients typically use our general software valuation services for a variety of purposes including M&A, tax support, financial compliance, capital formation, and litigation support.
Interested in learning more about embedded software valuation services? Check out our Embedded Software Valuation section.
Interested in learning more about general software valuation services? Check out our General Software Valuation section.
Early-Stage Company Valuation and Appraisal Services
We have represented both investors and entrepreneurs in the valuation of early-stage technology. We’re impartial and unbiased. Our clients appreciate the comprehensiveness of our valuation model and approach. We remove the arguments over valuation methodology.
Interested in learning more? If you’re an entrepreneur seeking a valuation for an investment round, check out our Entrepreneur’s Early-Stage Valuation Section. If you’re an investor seeking a valuation for a possible deal, check out our Investor’s Early-Stage Valuation Section.
Determining a royalty rate can prove to be difficult, especially since there are so many types of approaches and methodologies to choose from. The key is understanding these choices and determining which one is most suitable for a given situation. At Pellegrino & Associates, we have the experience and the resources to provide credible royalty rate determinations. Click on this link to learn more about our process.