When doing a startup valuation, investors or buyers are typically look at revenues and assents. Your start up might only have a few thousand dollars in sales. However, the start up might be worth several million dollars after valuation services have looked at the company. When getting a company valued, all the property and assets are analyzed.
As you may already know, intellectual property is a increasingly important competitive advantage for start ups in any market. With advances in technology, software and process management, start ups rely on their intellectual property, or IP, as major assets to secure funding for start up costs and grow the company’s profits.
Today, companies do their best to leverage all types of assets. The last couple decades have shown a huge emphasis on cash flow management and human capital potential, being considered as some of the most critical assets to the company. Secondly, companies focus on their cash flow, revenues and financial assets overall. In addition, fortune 500 companies and start ups alike want to take a proper inventory of their intellectual property.
Whether your product, idea, process or knowledge is protected by law or not, your company might be looking for IP valuation services to help determine value of it’s assets. This is a good idea for companies who are seeking alternative funding from investors as well as offers for a sale of the business. A proper business valuation firm will be able to help you determine the value of your start up. When it comes time for mergers and acquisitions, SBA loan approval or income tax reporting, these services can prove to be quite valuable.
Valuation Services On Intellectual Property
It does help if your start up has patented products or processes. For IP valuation services, an analyst will look at all of your IP in great detail. The best valuation companies will drill down to the impact and potential of the intellectual property you have either developed or acquired. This property value is a critical aspect of valuation services which can make a huge impact on the value of your company.
Furthermore, the business analyst will determine an actual value for all of your intellectual property. This includes valuations for patents, copyrights and trademarks too. After that, they must also evaluate how the intellectual properties combine together as a whole. In professional terms, the company will perform asset identification, portfolio assessment and best case scenario use for your company.
Choose IP Valuation Services
Choosing the right IP valuation company is very important. If you do not choose an established company that really gets down to the details, you may run the risk of receiving a lower valuation than your company is entitled to which is why startups fail. For entrepreneurs at young or mature startups, valuation is very important for everyone who has equity in the company.
Be sure to do your research about the valuation company. Ask if they have reference and previous clients who were happy with their services. You can even ask about their team. Some IP assessments are actually conducted by patent and trademark lawyers too. This could make a difference to you depending on what industry you are competing in.
To get started, contact several IP valuation service providers. Right from the start, you will be able to weed out a lot of companies. Then, now down the few who will be a good fit to make your start up worth, perhaps, 1 billion dollars!
Image from http://www.smu.edu.sg/perspectives/2013/11/20/translating-intellectual-property-economic-outcomes