Intellectual Property Valuation

Intellectual property valuation is part science, part art.  The science is in the financial formulas that analysts use to quantify the myriad of inputs that drive value.  Every valuation analyst, regardless of which school they hail from, learns the same formulas.  The art is in how the valuation analyst applies these formulas to generate a meaningful, statistically valid, and defensible value.  That is nothing a school or certification, no matter the pedigree, can teach.

Many of today’s valuation analysts simply do not have the technical background to evaluate the technical details of intellectual property.  That is a problem — the devil is in the details in IP valuation.  Understanding the technical details correctly can mean the difference between value being $1 billion or nothing.  Without the experience to ask the penetrating questions, the chance of misstating value is high.  Further, valuation analysts that do not have technical competence do not have the proper foundation to conform to appraisal standards.

At Pellegrino & Associates, we’re different.  We offer a greater precision in our value opinions.  We’re not generic business valuation analysts that dabble in intellectual property.  Intellectual property valuation is all we do.  While we have the requisite accounting and finance expertise in house to defend our work, our staff also includes engineers who have been through the product life cycle.  We have run product businesses.  We have received patents for our own ideas.  With that experience, we bring you a perspective that a traditional valuation firm cannot match.

We have valued a variety of intellectual properties, from trademarks and patents to copyrights and trade secrets.  Clients have used our valuations for a variety of purposes including tax, mergers, acquisitions, sales, litigation support, capital budgeting, and others.

Want to learn more about our greater precision?  Click here.

Want to learn more about the details we consider in valuation?  Click here.

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