5 methods to valorize the intangible assets held by your company.

A limited number of evaluators take into consideration intangible assets in their analyses, whereas we observe a significant increase in the contribution of these elements to the total value of a company.

What are intagible assets?

Intangible assets are assets that lack physical substance and include franchises, trademarks, patents, copyrights, goodwill, mining rights, securities, and contracts.

Five common methods are described below:

Relief from Royalty Method: Calculates the value based on the hypothetical royalties saved by owning the asset rather than licensing it.
Excess Earnings Method: A variant of DCF analysis, isolating the cash flows associated with a single intangible asset.
With and Without Method: Estimates the value of an intangible asset by calculating the difference between two discounted cash flow models: one with the asset and the other without.
Replacement Cost Method: Evaluates the asset based on the cost of new replacement, adjusted for obsolescence.
Real Options Method: Suitable for assets with the potential to generate future cash flows but are not currently doing so.

In a nutshell:

At OutMatch, we excel at adding an additional dimension to the transactions we orchestrate by highlighting and explicitly valuing the intangible assets held by the company. This approach enables us to significantly enhance the valuation of the concerned company.