Leadenhall VRG Pty Ltd
Valuations
Valuations

Intellectual property ['IP'] now forms an important part of most companies. In some circumstances, IP may represent the majority of the value of a company, with the value of the intangible assets exceeding the value of the tangible assets many times over. Accordingly, the valuation and management of IP is of increasing importance. Although not a definitive list, the US Accounting Standard SFAS 141 - Business Combinations, includes an illustrative list of 29 different types of intangible assets.

Key questions | How we can help | Our track record | For your interest

Key Questions

  • Is scarce capital allocated appropriately between competing projects?
  • Do we continue with the development of a particular piece of IP? (i.e. "go/no go" decisions
  • What are the milestones in the development and commercialisation of the IP and what are the appropriate exit points?
  • On the acquisition of a business or company, should an allocation of purchase price be undertaken to recognise the value of any IP?
  • Is the carrying value of IP impaired or in excess of its recoverable amount?

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How we can help

For companies involved in the creation, development or commercialisation of IP, Leadenhall can assist clients with:

  • selecting and prioritising projects;
  • determining the possible size of the market for the commercialised IP:
  • commercialisation strategies including locating government funding sources, industry and private investors;
  • assessing the risks, benefits and increases in value from subsequent stages of development;
  • apportion the value between internally developed IP and "bought in" IP;
  • investment decisions on patents (particularly prior to commencing the expensive national registration phase);
  • advice on appropriate valuation approaches and methods;
  • production of templates for "DIY" valuations;
  • review and guidance on valuations prepared internally; and
  • guidance on valuation techniques for compliance with Australian, US and International Accounting standards.

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Our track record

Leadenhall has experience with the identification, valuation and commercialisation of intellectual property, including the following:

  • University of Melbourne/Dairy Australia - valuation of technology and advice/negotiation support to facilitate the allocation of Trade Mark value for a transfer of technology licence agreement. Detailed negotiation support to develop new licensing terms for significant technology with global sales of US $200 m.
  • Grain Research and Development Council - evaluating a proposal to invest in a genetically modified wheat gene.
  • CSIRO - valuation of the Canopy Lidar Initiative for CSIRO, being remote sensing technology used in forest inventory measurement.
  • Establishing the value, pursuant to US Accounting Standards, of an Australian subsidiary's contract with the Federal Government for the supply of hearing aids.
  • Establishing the value of the patents and brand names for a company involved in the material handling industry.
  • Valuing a computer program on behalf of the Singaporean government.
  • Valuing steel framed building technology.

Our skills and expertise in valuing high technology companies have also been recognised with engagements to perform valuations and Independent Experts Reports for:

  • Rib Loc Group Ltd;
  • Laubman & Pank Holdings;
  • eFinancial Capital Ltd; and
  • Chariot Internet Ltd.

Leadenhall is also a panellist advising the Australian Taxation Office ["ATO"] on technology valuations and has undertaken a number of technology valuations on behalf of the ATO and CSIRO. These valuations have been of early stage life science technologies, biotechnologies and software applications.

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For your interest

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What our Clients Have to Say

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" I don’t know whether your client realises this, but you have really made it easy for us to participate (as a potential buyer) in the sale process. This is how businesses should be sold. "
Multinational investor on Leadenhall run sale process.


" If you hadn’t been involved we would never have worked through the transaction "
Finance Director after successful $50 million acquisition.


" We hired you so that the other side couldn’t and the end result proved the wisdom of doing that as reflected in the financial benefits to us of the transaction "
Managing Director at the end of a $5 million acquisition.


" Your explanation of complex valuation processes crystallised the key issues for our Board and helped set some directions for the future "
Finance Director of a State owned utility.


" Once again, my thanks for your able assistance - I hope we can do it again "
President of an international division of a Fortune 100 US company.