Several methodologies are used on the quantitative approach, but generally, they can be grouped in four methods:
Cost-based method
Market-based method
Income-based method
Option-based method
Intangible assets like patents, trademarks, designs and the likes are valued more than the physical assets like manufacturing setup, building and the likes.
Nowadays, most of the technology companies are heavily based on intangible assets and investments in knowledge, research and innovation. Expenditures in knowledge through investments in R&D or software, have grown at a higher rate than spending on intangible assets.
To know the value of your company it is very important to know the value of your intellectual property, or one of your competitors, due to the massive importance of intangible assets and patents in various companies.
Patent valuation also plays a very important role during negotiations. When you need to sell or buy a business, or if you want to license intellectual property rights, knowing the values of those intellectual property rights is highly critical. Most of the time, the seller tries to escalate the value of the patent, and the buyer tries to minimize as much as possible. Therefore, from both ends of the spectrum – the seller and the buyer – it is worth your time and investment to go through a proper patented valuation service agency in India like Brainiac IP solutions.
