The Client

An international PLC operating in general retail with revenues of $300m. The Company is actively pursuing an acquisition strategy to diversification its business risk and operations.

The Assignment

We were referred by Mazars, the Company’s auditors. The Company made an acquisition and required a reliable, independent IP Valuation to support a Purchase Price Allocation to be included in its financial statements.

Our Approach

We provided a valuation of each IP asset that we identified as being critical to material revenues of the acquired business and which met the definition of intangible asset as per international accounting standard, IFRS3. We used multiple valuation approaches to arrive at reliable valuations for each of the IP assets identified, which included contractual and non-contractual customer relationships, critical supplier contracts and brand and reputation.

We performed detailed information discovery on the acquired business in order to assess the reliability of the financial forecasts (free of buyer intent), the market opportunity and the industry in which the business operated, to assess whether or not the IP assets were being commercialized at their highest and best use.

The Outcome

Our IP Valuation report included our detailed assumptions, IP narrative and justifications for IP classifications, sources of external market inputs, and calculations, which made it extremely easy for this listed company’s auditor to achieve a quick and timely sign-off on the accounts.

Our PPA IP Valuation Reports are full of referenceable sources and reliable analysis designed to ensure timely auditor sign-off.

IP assets valued: contact-related IP, non-contractual customer relationships, marketing-related IP