When valuing IP in a company, don’t lose sight of the overall cost of capital for that business

John Rugman and Tony Hadjiloucas of Pricewaterhouse Coopers caution that the discount rates applied to the valuation of individual intangible assets in a company need to be reconciled to the weighted average cost of capital (WACC) in a business.

“It is important that the reasonableness of the value derived for an intangible asset is assessed in light of the values of other assets within the same business and their relative importance to the business and, importantly, the value derived for the entire business…”

Mike Pellegrino is putting on a day-and-a-half workshop on the intricacies and pitfalls of valuing early-stage technologies, including case studies, on March 6-7. Enrollment is limited.