SERVICIOS
VALUATION OF INTANGIBLES
An intangible is an asset with future income-generation potential, protected or otherwise, and which represents an economic barrier for other competitors to enter the industry in which each company carries on business, thereby improving the latter’s financial returns. An intangible sometimes offers a company the capacity to control a high market share and otherwise allows it to be more efficient in a widely shared and hence highly competitive market.
Intangible assets are usually divided into:
- Marketing intangibles: trade marks, trade names, copyrights, internet domains, trade know-how, etc. and, in addition, intangibles related to the client portfolio, such as contracts, current orders, etc.
- Manufacturing intangibles: patents, utility models, industrial designs, undisclosed technical know-how, trade secrets, inventions, formulae, manufacturing processes, copyrights, etc.
- Mixed intangibles: corporate reputation, business models, etc. The intangibles are “mixed” in that they “integrate”, interacting with and adding value to the business’s tangible transactions precisely due to how they are specifically integrated therein.
At HERRERO & ASOCIADOS we have a team of professionals highly specialised in the valuation of the different types of assets referred to above.
Our valuation services are required within the framework of corporate transactions, business financing, provision of collateral, etc., and in order for our clients to have the benefit of a valuation, which may be either “static” or “dynamic” (through periodic value updates).
Our valuation methodology includes the use of various parameters and systems, with the aim of arriving at the so-called “fair value” and/or “market value” based on the requirements set in the International Accounting Standards (“IAS”) and the criteria set by such international bodies as the Individual Valuation Committee (IVSC).
Valuation of an intangible asset’s legal strength: we carry out an in-depth due diligence in order to verify the ownership and actual validity of the trade mark or patent, etc., etc., before using our commercial and economic valuation methodology for such intangibles assets.