Pellegrino matches asset class with recommended IP valuation method


BVWire attended an excellent presentation by Mike Pellegrino earlier this month.  He gave a group of high-level, early-stage IP managers the benefit of his experience in choosing the proper valuation method.

Business Purpose or Asset Type      Recommended Valuation Method

Technology License                                       Royalty rate/profit split determination

Capital Formation                                           Integrated DCF and real option model

Technology Acquisition                               Integrated DCF and real option model

Divesting Technology                                   Integrated DCF and real option model

Open Innovation Partnering                       Royalty rate/profit split determination

Co-development of New Technology         Royalty rate/profit split determination

Patent Valuation                                              Integrated DCF and real option model

Copyright Valuation                                        Integrated DCF and real option model or cost approach for weak copyrights

Trademark Valuation                                      Integrated DCF and real option model

Trade Secret Valuation                                    Lower of Integrated DCF and real option model or cost approach

Software Valuation                                           Lower of Integrated DCF and real option  model or cost approach

Pellegrino is the author of BVR’s Guide to Intellectual Property Valuation. The Guide is available now, and will be updated again next month.


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