Valuing Intellectual Property
|1.||To define “intellectual property” (IP).|
|2.||To show that IP and business appraisals use the same approaches and similar methods.|
|3.||To convince you that IP valuations require specialized technical and case-specific knowledge.|
|4.||To distinguish between valuing the “big pot” of intangible assets and specific IP.|
|5.||To highlight the continuing growth in demand for IP valuations.|
IP is one type of intangible asset. An intangible asset is in turn one of three types of business asset, the other two being tangible and financial. Tangible assets include real property such as land, buildings, machinery, equipment, and inventory. They can be seen and counted, and are created by nature or physical work. Financial assets include cash, investments, receivables, and other items. They can be measured monetarily, and are created through commercial exchange.
Broadly speaking, intangible assets are everything else, such as