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.