Intangible Assets Valuation

Audit

MOK Audyt offers professional audits of financial statements and advice concerning mechanisms for control and accounting systems

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Valuation

MOK Audyt offers professional valuation services of companies, trademarks and other intangible assets, valuation of financial instruments and testing for impairment of assets

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Intangible Assets Valuation

Brand plays a major role in creating the current and future ability to build enterprise value. How much is a brand worth? Our services in the field of valuation help to estimate that intangible value.

The value of brands and trademarks in business enterprises in Poland is playing an increasingly important role. Shareholders perceive the essence of their brands, and more resources are invested in the development and promotion of their own brands. As a result of these actions, some Polish brands also become known on European or even global scale. The development of brands and increase of their role in business, also increases the need for reliable valuation based on methodology, that is widely accepted. Our advisory services respond to these needs.

MOK Audyt experts are skilled in assesing the value of brands and trademarks for companies operating in the following sectors: food, clothing, media and advertising, metal processing, construction and distribution. Our valuations have been used for tax optimization, business economic strategies and verification of balance sheet values ​​(tests for impairment).

We use a professional, practice-tested methodology for valuation of intangible assets, to execute it in a proper manner of their substance, efficiency and effectivness.

We carry out the valuation of brands and trademarks for the purpose of:

  • tax optimization,
  • determining the rates of license transactions between related parties,
  • transformation of legal form,
  • mergers and the carrying amounts in accordance with IFRS and the AA.
  • bringing the brand as in kind contribution (including the contribution of the organized part of the enterprise having the trademark)
  • sale of trademarks (brand)
  • sales of licensing agreements, for example. relating to the exercise of certain rights to the mark,
  • collateral property in the process of obtaining financing.

For the purpose of estimating the value of the brand and trademarks, we use a valuation Royalty Relief Approach.

This method is based on the assumption that by having the brand / trademark, a firm generates savings on potential royalties that would be incurred in the event of licensing the brand from another entity. These savings are defined as the product royalty rate and revenues. This method is based on the assumption that if the use of the brand by its owner was licensed, the licensee would have to pay the appropriate license fee calculated as a percentage of revenues generated with the brand. Thanks to our brand / trademark being your own, you  avoid paying royalties. The valuation method involves estimating future revenues, will bring brand / trademark and calculating on the basis of potential future royalty payments using the rate of royalties for similar brands.  The income related to the brand / trademark obtained in this way, is calculated using a discount factor to the present day, which allows to estimate the present value of the brand. This method is a variation of the DCF method, in which instead of the added value achieved with the brand  theoretical license fees are applied. Rates of royalities applied to the valuation, are based on licensing transactions identified on the Polish market and the world  licensing markets, applied to the brand belonging to entities operating in a similar industry in relation to the measured characters.