An African-based non-banking financial services business specializing in the provision of services relating to risk and financial services, including general insurance brokerage, investment advisory, healthcare management consulting, pension fund consulting and administration. The Company has developed an international presence which is particularly strong in East Africa. The Company has a 40-year track record with corporates and consumers for providing expertise in a variety of consultancy services.
Like many businesses, the Company’s investment in innovative processes and IP assets is lost within expenses, despite creating sustainable advantage. We were engaged by the Company to perform an IP valuation to recognize this IP value to support internal decision making. The Company was interested in determining an accurate return on investment for its IP assets and identify where value had been created, which would enable Management to make strategic decisions about future resource allocation.
Using our Metisology® approach we identified the IP assets underpinning the competitive advantage and financial performance of the Company. A number of IP assets underpinned multiple revenue streams and so our Metisology® mapping exercise was critical. The Company engaged us to perform a desktop valuation on the IP portfolio. We utilized our proprietary Royalty Rate Scorecard to benchmark the quality of each IP asset class and generate an appropriate royalty rate in line with industry average comparables for an equivalent IP bundle of rights.
We delivered a reliable IP portfolio valuation which the Company used to assess its return on investment to date, and to support the recognition of IP value in the Company and to inform internal decision-making. We also performed additional analysis on the financial environment of Africa, in which the Company operates in, to identify suitable valuation and financial inputs that were appropriate for this valuation.