Understanding Intangible Asset Valuation: Key Insights for Business
Valuation of intangible assets is significant to firms that are interested in determining the monetary value of intangible assets. Intangible assets, including patents, trademarks, copyrights, and reputation, typically hold high value and impact business performance. What is Intangible Asset Valuation? Appraisal of intangible assets is the determination of the fair market value of intangible assets. Due to the fact that intangible assets do not possess a determinable market value, expert appraisal is required for the proper valuation. Why is Intangible Asset Valuation Important? Accurate valuation is required in almost all situations: • Mergers & Acquisitions – To establish the true value of a company's intangible assets. • Financial Reporting – Offers assurance of accounting standards compliance. • Litigation Support – Helps in resolving asset value or ownership disputes. • Taxation & Estate Planning – Accurately calculates asset value for taxation. Val...