Valuation firms that report single value indication are effectively throwing darts at a board.  Respected valuation firms that offer best case, worst case, and expected case results, weighted by probability of success, throw three darts at a board.  If this level of analysis represents the best that the valuation industry has to offer, it may be safer to day trade Internet stocks.

At Pellegrino & Associates, we’re different.  We approach value like an insurance actuary.  An insurance actuary cannot predict how long a given person will live with any reasonable precision.  It is like throwing darts at a board.  However, an insurance actuary actually can predict, with remarkable precision, how long a given demographic will live, because there is a large enough population within the demographic.  We use that same approach in our valuation process.  We don't calculate just three values--we calculate 10,000. Thus, we have a large enough population that allows us to predict, with greater precision, the expected value of intellectual property as captured in our valuation models. It is a more scientific and defensible way to establish value than just throwing darts at a board.

Want to know the probability that your value is greater than $10 million?  Want do know the probability that you will lose your shirt?  Want to know that exogenous variables drive your value?  Want to know why our values are more comprehensive and defensible, particularly in a contested situation?  We can tell you.

Interested in learning more?  Contact us to see how we can help.