Valuation Purposes

  • Ad Valorem Taxes: Some of the techniques used by property taxing authorities include value that is intangible in nature. Therefore, in certain cases, in order to determine the correct property tax base, these intangibles must be valued and removed from the business enterprise value.
  • Bankruptcy and Reorganization: Value opinions may be necessary in reorganization situations to define the intellectual property assets, their values, amounts and allocations available to debtors, and the impact of proposed restructuring plans.
  • Collateral-based Financing: Companies which have intellectual property or intangible assets as their main asset may be required to determine the fair market value of those assets in order to obtain a loan or comport with loan requirements.
  • Corporate Planning Purposes:  Values of intellectual property provide management teams with important information which may be used to analyze and optimize capital budgeting and other strategic decisions.  For example, the value of existing intellectual property may be used to set R&D budgets or to identify commercialization opportunities, licensing opportunities, or a potential asset sale, among other types of transactions.
  • Corporate Restructuring:   In a restructuring initiative, a valuation of intellectual property may be necessary for general planning, tax planning, or compliance.
  • Financial Reporting Compliance: In accordance with ASC Topic 805, the fair value of identified intangible assets is regularly determined in connection with purchase price allocations and, in certain instances, for other financial reporting purposes.
  • Intercompany Transactions:  Intellectual property is sometimes transferred between related parties, both domestically and internationally.  In such cases, a valuation is necessary to support the transaction.
  • Licensing: In licensing situations, an independent royalty rate to be charged for use of intellectual property is determined by a third-party appraiser.
  • Litigation:  Determining the damage done to a patent or trademark holder by an infringer requires that a value is placed on the patent or trademark.  Valuations of intellectual property may be required as support in other commercial damages cases, as well.  Further, in marital dissolution, values of intellectual property or intangibles must be determined as part of the marital assets.
  • Personal Goodwill:  A portion of the goodwill of a business enterprise can sometimes be attributed to individual company owners or key employees.  Recognition of this fact may have important tax implications, most notably in sale transactions and matrimonial distribution situations.
  • Personal Tax Planning and Compliance:  More and more frequently, we are seeing transfers of intellectual property for estate planning purposes.  In certain cases, intellectual property must be valued in order to file a gift or estate tax return.  Separately, the charitable contributions of intellectual property must be substantiated with a valuation.
  • Strategic Alliances: As companies join together to create a greater economic benefit, it is often important to value the independent contributions, including intangible assets, each brings to the alliance in order to determine comparative ownership.

Our Office Locations

Get in Touch with our Boston Team:

101 Arch Street
8th Floor
Boston, MA 02110
(617) 892-6078

Contact: Mark E. Lingerfield, ASA

Get in Touch with our Chicago Team:

203 North LaSalle Street, Suite 2100
Chicago, IL 60601
(312) 214-2299

Contact: Tadd A. Lindsay

Get in Touch with our MPI Headquarters:

1000 Lenox Drive
Lawrenceville, NJ 08648
(609) 924-4200

Contact: Mark E. Lingerfield, ASA
Joseph C. Hassan, CFA, ASA

Get in Touch with our New York Team:

10 Grand Central (155 E. 44th Street), Suite 1905
New York , New York 10017
(212) 935-4422

Contact: Daniel M. Kerrigan, CFA
Todd G. Povlich, ASA
John L. Varga, ASA

Get in Touch with our Orlando Team:

5401 S. Kirkman Road, Suite 310
Orlando, Florida 32819
(407) 599-0060

Contact: Roy Meyers, CFA, ASA

Get in Touch with our Philadelphia Team:

Two Logan Square, 100 N. 18th Street, Suite 300
Philadelphia, Pennsylvania 19103
(267) 233-5033

Contact: Mark Lingerfield, ASA
Tracey M. Jasey

Get in Touch with our Connecticut Team:

1720 Post Road East, Suite 214C
Westport, CT 06880

Contact: William Murray, CPA/ABV/CFF, ASA

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