Robert Reilly (WMA) says it's worth simply outlining the economic benefits of a firm's IP in any valuation report where intellectual property is material "even if it's only that it's better to have a license than not have one." He usually recommends a simple bulleted list of a few items under headings such as:
- increased revenue implications
- reduced costs implications
- risk reduction implications
- business opportunity implications.
With IP, Reilly also thinks it's particularly important to be sure to explain why you chose not to use certain methods. As a valuation professional, you know that certain approaches or methods may not be effective for intangible assets--but the ultimate users of your report may not know the distinction. "Be sure to include a sentence such as 'I used these three methods, and did not use these other four methods because they weren't applicable' so that other users at least know that these were considered and rejected," he advises.