VALUATION Corp. provides know-how valuation services in Moscow and other Russian regions
In modern economy, commercial or technical information facilitating business efficiency represents a very important and quite an expensive product. Such information is regarded as intellectual property and it can be an indispensable element of a business and occupy an important place in company’s asset structure. Usually, this type of information is referred as know-how, or trade secrets - a system of technical, administrative or financial methods, knowledge and skills which have value, but can not be protected by state patents.
Valuation of know-how can be conducted for the various purposes, including but not limited to:
- making non-monetary contribution to the company’s charter fund (shareholders' capital);
- closing of a buy-sell transaction;
- making adjustments to the book values;
- estimation of the market capitalization of the company.
Valuation of various types of know-how - R&D results, technologies, improvements and innovations of any kind - is conducted by capitalizing the actual or potential commercial profit (or other benefits) expected to be generated by the asset.
Documents and information required for valuation of a know-how:
- Description of the subject know-how.
- Specifications of the products, which are produced using the subject know-how, compared with similar (competing) products, if necessary.
- Description of possible benefits from the application of the subject know-how, for example:
- Increase in sales when using the subject know-how;
- Increase in price attributable to the product quality when using the subject know-how;
- Savings in production costs through application of subject know-how.
- Annual sales volume of products made using the subject know-how for the last 3-5 years.
- Expenses for creation of the subject know-how.
The above list of documents and information is preliminary and can be reduced or expanded after valuer’s detailed review of the valuation assignment, depending on valuation purpose and the nature of the subject know-how.
Should you have any questions regarding valuation of know-how in Russia, please contact us.
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