Estimating intangible assets: a code of ethics has to be respected

As an intangible asset appraiser, we regularly hear reports of questionable practices in an unclear or not really regulated profession.

It happens to find valuations for which the impartiality of the appraiser is far from proven.
Industrial Property attorneys sometimes estimate the patents that their company files … How to independently assess the legal quality of this IP rights in this case?

It also happens that valuers are paid according to the value they came to. How then to ensure that the appraiser did not inflate his calculations to optimize his bill?

Finantis Value therefore strives to adhere to clear ethical rules aimed at ensuring the transparency, independence and impartiality of its valuations. Among other established principles, we are not related to any actor filing patents or trademarks for example and our remuneration is systematically fixed. Similarly, we have a transparent policy regarding the management of conflicts of interest. The customer is thus assured that the valuation we carry out for him is independent and impartial.

In addition, by relying on a multidisciplinary team and independent partners ( Intellectual Property (IP) Attorneys, tax experts, experts in computer systems …), we also strive to consider all the characteristics of the assets we have to value. We study the legal, technical, strategic, marketing and financial aspects, to appreciate all the strengths and weaknesses of the assets. We perform a real “due diligence” in order to provide the most documented valuation possible, and to meet accounting, tax, legal or financial requirements and also providing investors with reliable information.

Strategy and brands

Brands are an important aspect of companies’ strategy and enable their transformation. They are useful in the development of performance and can strongly support the innovation process.

Business developments, brands strategic vision, commercial and financial communication are all connected. Strategical choices are finally proven by the revenue growth and the adoption of the brand by the customers.

Success is possible after an in-depth market study and also the value  assessment of the brand(s). The positioning on the market, the differenciation regarding competitors, and product renewal are all common factors in the creation of a strong brand.

Dealing with market mutations, it is essential to think through the company strategy and to consider further the positioning of its brand on the market, the associated value of this trademark, that is linked to its notoriety.

How to estimate the value of your software or digital products?

évaluation financière logiciel

Software, apps, or more generally what we call digital products, are intangible assets. They can be:

  1. estimated and they can be a contribution to the company’s capital. Most of the time this is done at the company’s creation or  if you’re planning a potential entry of financial investors and want to be prepared for the purpose of negotiations.
  2. Estimated as intangible assets during assets transfer from a company to another, in order to integrate them in their accounting books.

In all those cases, we clearly have to question the real, or fair, value of these developments.

Read moreHow to estimate the value of your software or digital products?

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