MILES / Financial Reporting Valuation
Intangible Assets Valuation
Understand the economic value of brands, customer relationships, technology and intellectual property.
Discuss Intangible Assets Valuation
An intangible asset’s value depends on the rights involved and its ability to support economic benefits. Ownership, contractual protection, useful life and the relationship with other business assets all affect the analysis.
MILES values trademarks and brands, customer relationships, technology and patents for financial reporting, intellectual property transfers and other transactions. This service can form part of a PPA or a separate engagement.
When should you speak with us?
- An acquisition involves brands, technology or customer relationships requiring valuation analysis.
- You are transferring or licensing intellectual property and need a valuation reference.
- Management needs to understand the value of a specific intangible asset separately from the whole business.
How we help
Identify the asset and rights
Define the asset, ownership or contractual rights, intended use and valuation purpose, distinguishing it from related assets.
Analyse economic benefits
Review revenue sources, customer retention, technology use, relevant costs and the expected period of economic benefit.
Develop valuation assumptions
Select appropriate methods and analyse forecasts, useful lives, royalty rates or other parameters relevant to the asset.
Explain the conclusion
Document the result, significant assumptions and sensitivity where appropriate, with reporting and query support within scope.
What information is typically required?
- Asset descriptions, ownership records and registration documents
- Licensing, customer and other relevant contracts
- Asset-related revenue, costs and forecasts
- Product, customer retention, technology and useful-life information
The information request will be tailored to the purpose and scope. If your records are incomplete, we can first discuss preparation priorities.
Frequently asked questions
Is intangible asset valuation the same as PPA?
No. PPA addresses the allocation of acquisition consideration for financial reporting and may include several assets and liabilities. An intangible asset valuation focuses on specified assets and can also serve purposes outside an acquisition.
Can an asset have value if it is not recorded on the balance sheet?
An asset’s accounting recognition and its economic value are separate questions. We assess the specified rights and benefits; management and its accounting advisers determine the applicable accounting treatment.
Plan your intangible assets valuation work
Share your objectives, the assets or businesses involved, available information and expected timetable. We will discuss the scope, preparation priorities and next steps with you.
Enquire About Intangible Assets Valuation