Business case 3 | StradiValue

Business Case 3: With or without IP assets?

In this case study, we used the revenue approach to value a set of intellectual properties. We next tested it for impairment, and then used another approach answering the following question: what would happen if the IP did not belong to the entity?

Value a promising asset ?

The asset value can be asset with

1) a cost based approach,

2) a revenue based approach

3) a comparables based approach.

Is the value impaired?

In this case study, we have opted for a cash flow approach. To estimate them, we built a robust financial model that could be reused and updated a year later when conducting a mandatory impairment test. Our method simplifies bookkeeping.

And without my rose?

Last, we had to demonstrate that our results were holding under another approach. Hence, we simulated the loss of the IP and the royalties that the entity would have to pay in that situation, or the revenues that the entity would not be able to generate.