IP Valuation Services

When You Need an IP Valuation

IP valuations are commonly required when businesses transfer intellectual property across jurisdictions, apply for an IP Box regime, acquire or sell IP assets, undergo M&A integration, or face challenge from a tax authority on the pricing of an IP transaction. In these situations, the valuation needs to be commercially grounded, independently supportable, and capable of standing up to tax authority, investor, and legal scrutiny.

IP Box Application

Several jurisdictions offer favourable IP tax regimes that apply a reduced rate to income derived from qualifying intellectual property. Accessing these regimes typically requires transferring the IP to a qualifying entity — a transaction subject to transfer pricing rules. Without a supported valuation, a tax authority can challenge whether the qualifying income calculation is correct or whether the transfer price reflects true arm's length value, putting the regime benefit at risk. An independent IP valuation establishes the arm's length transfer price and supports the calculation of qualifying income under the regime.

Cross-Border IP Transfer

When IP is transferred between related entities across jurisdictions, transfer pricing rules require the transaction to be priced at arm's length. Without an independent valuation, a tax authority can challenge the transfer price - arguing the IP was undervalued to shift profits to a lower-tax jurisdiction, triggering adjustments, penalties, and potential double taxation. An independent IP valuation establishes the arm's length value and provides the documentation needed to defend the transfer price.

Sale of IP to a Third Party

When intellectual property is sold to an independent third party - whether as a standalone asset sale or as part of a broader transaction - the parties need an independently determined value to support deal pricing, inform negotiations, and give both sides confidence in the price being paid. Without an independent valuation, there is no objective basis for what the asset is worth, leaving both buyer and seller exposed to challenge or disagreement on price. iVC provides IP valuations that give both parties a commercially grounded, technically supportable basis for the transaction.

M&A - Integration

When a business with significant IP is acquired, integrating that IP is often critical to realising the full value of the deal. An independent IP valuation helps allocate the purchase price across patents, software, brands, and other intangible assets for accounting and tax purposes, while supporting the integration of IP in-house to extract operational and commercial synergies. Without a supported valuation, tax authorities may challenge the allocation of value between tangible and intangible assets or the treatment of cross-border IP transfers post-acquisition. An independent valuation provides a robust basis to support the integration structure and underlying assumptions.

IP Valuation Methods

No single methodology is appropriate for every IP asset or transaction. The right approach depends on the nature of the asset, the availability of market data, the purpose of the valuation, and the transfer pricing context. iVC applies recognised IP valuation methodologies — and where appropriate, combines them — to produce valuations that are technically robust, commercially realistic, and appropriate for the specific transaction.

Relief from Royalty (RFR)

The Relief from Royalty method values intellectual property by estimating the royalties a business would otherwise pay to license the asset from an independent third party. By capitalising the notional royalty stream the owner is relieved from paying, the method produces a defensible market-referenced value for the IP asset. RFR is commonly applied to patents, brands, and software platforms where comparable royalty rate data is available.

Cost Approach

The cost approach values intellectual property by reference to the cost of developing or replacing the asset. It is typically used where income-based methods are unreliable — for example where the IP is at an early stage of development, has not yet been commercialised, or where future income projections are highly uncertain. In these circumstances, development or replacement cost provides a practical proxy for value when reliable forecast cash flows or comparable market data are not available.

Excess Earnings Method (EEM)

The Excess Earnings Method values intellectual property by isolating the economic returns attributable to the IP asset after accounting for the contributions of all other assets in the business. The residual earnings - those that cannot be explained by other assets - are capitalised to arrive at the value of the IP. EEM is commonly applied to customer relationships, proprietary technology, and other intangibles that are central to the earnings capacity of the business.

Your IP valuation experts

iVC supports IP valuations across a range of industries and business models, including SaaS, fintech, e-commerce,healthtech and digitally-driven businesses. Our experience includes businesses with significant proprietary technology, software platforms, brands and trademarks, customer data assets, and other intangible property with cross-border commercial relevance.

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Here's what our clients think of the work we deliver for them. We deliver positive and profitable outcomes for C-Level executives across cross-border expansion and transfer pricing.

The team at iVC Consulting is young but nevertheless very experienced and knowledgeable. They quickly obtained a good understanding of our quite complex global structure and resulting needs in relation to a global transfer pricing policy. They approached the problem as if they were internal employees of Docplanner - in a very pragmatic and efficient way. I was also impressed by their modeling skills. Highly recommend, especially for high-growth tech companies.

Peter Bialo
CFO and Board Member
DocPlanner

Transfer Pricing and Beyond! If you are looking for a quality service and advice that works in practice, iVC Consulting should be your choice. Extensive professional knowledge, knowing its client, practical approach - that's what makes a difference.

Agnė Petkevičiūtė
Director of Tax
Vinted

★★★★★

★★★★★

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