At a pre-IP valuation meeting, set and communicate the standards all will be working under. In BVR’s Guide to Intellectual Property Valuation, Mike Pellegrino lays out fundamental procedures before valuing IP, instructive to IP owners and analysts alike:
- Establish and communicate the valuation project type. At a project kickoff meeting, the project manager discusses the type of valuation being performed. Is it a non-certified valuation calculation? Is it an appraisal that will conform to the USPAP (Uniform Standards of Professional Appraisal Practice) standards?
- Chose the value standard. The project manager decides the value standard (fair value, fair market value, etc.). While the due diligence procedures for IP valuation do not vary as a result of the standard chosen, downstream activities such as market research, valuation modeling and valuation reporting will depend on the value standard.
- Set key project milestone dates and establish the overall project schedule.
- Divide up and assign engagement tasks.