IP portfolio valuation: Determining the commercial value of assets
For accountants, financial advisors, and insolvency practitioners, an Intellectual Property (IP) valuation has become essential for accurate balance sheet reporting, transaction pricing, and securing debt financing.
We collaborate with you to provide a legally defensible and commercially credible valuation that can withstand scrutiny from investors, tax authorities, and opposing counsel during due diligence.
We bridge the gap between legal ownership and financial reality, operating as a discreet, specialist resource to protect and enhance your primary client relationship.
What is it?
IP portfolio valuation is the process of translating a company's intangible assets, such as trade marks, patents, designs, software, and goodwill, into a definitive financial figure.
This service is required for various critical commercial and financial functions:
- Financial reporting (FRS 102/IFRS): Accurately reflecting intangible asset value on the balance sheet.
- Mergers & acquisitions (M&A): Determining fair transaction pricing for both buyers and sellers.
- Security for lending: Establishing a credible asset value for debt finance and collateral.
- Tax planning & transfer pricing: Establishing clear, supportable values for tax compliance.
- Insolvency & restructuring: Providing rapid, expert valuation of sellable assets within a distressed business.
How we assist you
We combine legal ownership verification with established financial methodologies to deliver valuation reports that are robust, transparent, and fit for purpose across legal and financial contexts.
- Defensible methodologies: We utilise recognised valuation methods (e.g. cost, market, and income approaches) tailored to the specific IP right and the purpose of the valuation (e.g. M&A vs. Lending).
- Risk-adjusted valuations: Our litigation background allows us to apply a highly realistic risk adjustment to the valuation, factoring in potential challenges such as infringement liabilities or ownership defects, giving the final number genuine credibility.
- Integrated IP due diligence: We ensure the valuation is grounded in comprehensive legal ownership checks, preventing the embarrassment of valuing an asset that the client does not legally own.
- Expert witness standard: Our valuation reports are prepared to a standard that can be confidently presented in court, during tax audits, or in high-stakes negotiation settings.
Our unique capability in this area
Our strength in IP valuation is that we are not just financial experts; we are litigation experts who understand how IP value is challenged and defended in a commercial dispute.
- Litigation-proof credibility: We know exactly which valuation figures and underlying legal assumptions crumble under cross-examination. We build our reports to be unassailable, ensuring your client's financial data is watertight.
- Clarity for finance: We strip away legal jargon, delivering clear, narrative-driven reports that allow finance professionals to easily understand the assumptions, methodology, and the final commercial implications.
- Insolvency speed: For insolvency practitioners, we prioritise speed and precision, delivering rapid, legally sound valuations that maximise asset recovery within tight statutory deadlines.
IP Portfolio Valuation: Common Questions and Answers
How is your IP valuation service different from an accounting firm's valuation?
Accounting firms excel at financial modelling; we excel at legal validation.
We do not replace the financial modelling, but we critically inform it.
Our specialist role is to stress-test the legal integrity of the IP, ensuring the financial numbers are not based on flawed, unenforceable, or disputed legal assets.
We provide the legal assurance that the asset actually exists and can be protected.
What specific scenarios require a specialist IP valuation?
Specialist valuation is essential in high-stakes, contentious, or complex scenarios: M&A due diligence, securing asset-backed lending where IP is the primary collateral, shareholder disputes, and any litigation requiring a quantified damages claim.
We ensure the valuation is fit for the specific legal and financial purpose it is required for.
What is 'Litigation Risk Adjustment' and why is it important?
Litigation risk adjustment is our unique process of reducing the projected financial value based on legal risk (e.g. a 20% reduction if a core patent has questionable validity or a major trade mark has significant non-use risk).
It ensures the final valuation is conservative, realistic, and legally defensible, protecting both the investor and the client from future liability.
What cost model is typically used for IP valuation projects?
IP valuations are ideally suited for fixed phase pricing.
After an initial scoping of the client's portfolio and the purpose of the valuation, we provide a clear, fixed fee to cover the entire legal and financial analysis and report generation.
This gives your firm and your client absolute budget certainty.
If you wish to provide this service to many clients, it may be more suitable to do so under a banked hours or retainer basis.
Partner with specialist IP counsel
Ensure the financial advice you provide is based on the most accurate and legally defensible valuation of your client's IP assets. Use the contact form below to arrange a confidential consultation on how we can collaborate.
The content on this page is provided for general informational purposes only and does not constitute legal advice. No solicitor-client relationship is created by your use of this site. While we strive to ensure the information is accurate and up-to-date, it should not be relied upon as a substitute for professional legal counsel. For specific advice regarding your legal situation, please contact us directly to arrange a consultation.
Find out more about how we charge for what we do here.