Financial Valuation Inquiry

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.