What valuation methods do you use?

Whether using our online Sollomon® valuation platform or Service team for a bespoke valuation, the same valuation methods are available for use.

All three briefly described below are presented in our Sollomon® valuations, though the market comparison valuations are only available in some markets. The valuation methods to be used for our bespoke IP valuations will be determined once we have conducted our initial interviews with you and fully understood the background of your business and IP, as well as the context of your requirements.

Income-based method

This is the valuation method most commonly used for establishing the value relating to IP transactions, and using projected cashflows, reflects the value of the royalty that someone else would have to pay in order to license the intangible asset in question.

Cost-based method

Also known as the cost-amortisation method, this method determines the present-day value of the investments made to date in relation to the useful life of the assets.

Market comparison method

Our Sollomon platform provides a standardised view of the pre-money IP value of your activity sub-sector. Should it be established that a market valuation is useful to a bespoke IP valuation report, this approach will be carefully considered, researching precedents in recent market activity to inform the calculations.