Client Request
The client engaged our team to perform a valuation of proprietary know-how and technical solution utilised within the power transmission and distribution sector. The engagement was undertaken to determine the fair value of the intellectual property for financial reporting and strategic purposes.
Project Overview
The subject intellectual property consists of proprietary know-how and technical solution developed for the application within power transmission and distribution infrastructure. The technology was designed for use within electrical infrastructure and represented a commercially exploitable intellectual property asset.
Approach and Methodology
Our team conducted a review of the intellectual property, supporting technical documentation, historical financial information and relevant industry data. Following consideration of the cost, market and income approaches, the Relief-from-Royalty Method (“RFR”) was selected as the most appropriate valuation methodology for the subject intellectual property.
Under the RFR method, the value of the intellectual property was determined based o the present value of forecast royalty income attributable to the asset over the projection period, together with a terminal value reflecting the continuing benefit of the intellectual property beyond the explicit forecast horizon.
Scope and Execution
- Methodology: Relief-from-Royalty Method (Income Approach)
- Deliverables: Intellectual Property Valuation Report and supporting valuation analysis
- Delivery Time: Completed within 3 weeks from project initiation
Outcome
The engagement resulted in a well-supported valuation of the subject intellectual property, supported by industry research, market-based assumptions and income-based valuation techniques. The valuation provided the client with an independent fair value assessment of the intellectual property, supporting informed decision-making and providing a reliable basis for evaluating the intellectual property’s economic significance.