GHB Intellect specializes in numerous intellectual property (“IP”) services, including Financial Valuation.
Each Financial Valuation includes a corresponding Technical Evaluation to assess the potential strength and value of the relevant patent(s) across three metrics: (a) patent strength, (b) encompassed technology, and (c) market indicia. The information from the Technical Evaluation is used to support or inform the Financial Valuation. Please refer to our Technical Evaluation services for a detailed description of the various tiers of evaluations.
For those with large patent portfolios who are on a budget and unsure of what their key IP assets are, we suggest performing standalone Technical Evaluations, which can be used to informatively guide what next steps to take in evaluating, developing, or monetizing such assets.
A summary of our Financial Valuation tier 4 is provided below.
Financial Valuation Tier 4
Summary: Tier 4 is a more thorough analysis relative to Tier 3 and therefore includes the services described in Tier 3 but is further augmented. Specifically, this tier will include not only an assessment of the Income Approach (as described in the lower tiers) but also an evaluation of the Market Approach and Cost Approach. These, along with the Income Approach, are the three commonly used valuation methodologies leveraged to determine the value of a patent asset. The Market Approach looks to market-based indicia such as guideline transactions and other comparable data points to ascertain the potential value of the patent(s) through the lens of publicly available market transactions. The Cost Approach focuses on assessing the value of a patent asset based on the cost to replicate or provide substantially similar benefits provided by the technology embodied in the patented invention. The Income Approach, Market Approach, and Cost Approach will help triangulate the value of the patent(s) in consideration through multiple dimensions.
Use Cases: This tier is recommended for patent owners seeking an in-depth report which considers multiple valuation methodologies thereby providing additional guidance as to the potential value of the patent(s). This tier is also structured and crafted for internal and external consideration (see deliverables below). This tier is also strongly recommended if the patented technology and/or relevant products fill a niche demand/market.
Deliverables: A thorough report which includes descriptive write-ups of the: (a) subject patent(s), (b) relevant industry and/or market segments, (c) relevant Total Available Market (“TAM”), (d) Income Approach analysis, including comparable royalty rate indicators, (e) discount rates and risk adjustments, (f) Market Approach analysis, including identified comparable market transactions, (g) Cost Approach analysis, including identified value indicators, and (h) a conclusion of value for the subject patent(s). All relevant materials, data, and the valuation model will be provided as part of the final deliverables. We will conclude the project with a meeting to discuss the key findings of the report and answer any questions. A Tier 4 Technical Evaluation is also included.
Please complete the form below to request more information about how our financial valuation services can benefit you. If you already have an idea of which Tier of valuation you would like performed, please feel free to indicate that in this questionnaire instead. Otherwise, we can discuss what makes the most sense for your needs.
GHB Services, LLC (d.b.a. GHB Intellect) is a technology and business consultancy and not an accounting, investment or law firm. We do not offer accounting, tax, investment or legal advice or representation.