Valuing Customer Relationships: The Do's and Don'ts of the Distributor Method

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Training Event Transcripts
February 25, 2020
Edward Hamilton, CFA
Sean Woodward
valuation methods & approaches
relief-from-royalty, cost approach, excess earnings method, fair value, market approach, valuation methodology, valuation methods, customer relationships, with/without method

Summary

While the relief from royalty method and multiperiod excess earnings method are effective tools for valuing intangible assets such as customer relationships, they rely on market data that can be both highly subjective and of poor comparable value to the subject company. As an alternative, the distributor method provides appraisers with a market-based proxy for use in valuing customer relationships. Join experts Edward Hamilton and Sean Woodward to explore the strengths and weaknesses of customer relationship valuation methodologies and how the distributor method can assist in decreasing subjectivity in this process.
Valuing Customer Relationships: The Do's and Don'ts of the Distributor Method
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