As an expert in financial valuations and intangible assets, Finantis Value carries out financial valuation studies of companies, but also, more specifically, of intellectual property rights (or IP rights) such as brands, trademarks, patents, softwares, digital products , know-how, trade secret…
We also estimate goodwill and PPA (purchase price allocation).
Financial Assessment of Intangible Assets
The financial valuation of intangible assets is required in different strategic contexts (mergers – acquisitions, divestitures, partnerships), accounting, legal and tax matters.
Our expertise in this field consists in identifying the intangible assets separable from goodwill (brands, technologies, customer base, etc.) in application of the accounting standards.
Our approach enables us to estimate intangible assets and intellectual property rights such as brands, trademarks, patents, know-how, processes, softwares, digital solutions…
We also carry out independent valuations of corporations’ activities to test the goodwill (“impairment tests”).
In order to understand the economic reality of your intangible assets, we can estimate the royalty rate that may pay a licensee.
Finally, in the context of M & A transactions, we can measure the strategic and financial value of a trademark, patent, contract, license, goodwill or any other assets.
The applicable methods are numerous and their relevance depends on the context and the information available in this context.
There are three common approaches:
- Cost approach
- Market Approach
- Income approach
In addition to economic data, our study is based on a thorough analysis of the assets to be valued, in order to determine, at least qualitatively, its strengths and weaknesses.
Thanks to our multidisciplinary team, we deal with the following aspects:
- legal matters : validity, quality and scope of protection,
- technical matters : nature of the innovation, its position in the state of the art, validation of the development potential,
- marketing matters : positioning, development plan, communication, brand image,
- Economic and financial
Considering the strong globalization trend, governments have strengthened their legislation to ensure that financial markets are more secure on the completeness and fairness of financial statements.
Our job as evaluator is therefore primarily to help entrepreneurs to estimate the value their company created.
Therefor, our approach is :
- to thoroughly acknowledge the company’s mechanisms,
- to understand the internal operations of the latter,
- to study financial and / or accounting indicators,
- to appreciate the development potential of the company by identifying and valuing its intangible capital in all its aspects (human capital, relational capital, structural capital) and by integrating particularly innovative assets with short, medium or long-term development potential.