Using the Distributor Method to Value Customer Relationships

Business Valuation UpdateVol. 18 No. 5
May 2012
Edward Hamilton, CFA
PJ Patel, ASA, CFA


A common framework when valuing intangible assets of a business—such as brands, trademarks, and technology—is to use the relief from royalty method, combined with the multi-period excess earnings method (MPEEM) to appraise customer relationships. This fra ...