Benchmarking Identifiable Intangibles and Their Useful Lives in Business Combinations, Third Edition
August 2021 PDF, Softcover
BVR (editor)
Business Valuation Resources, LLC
Benchmark data is used to help support the allocation of intangible assets and the estimation of remaining useful lives for a purchase price allocation (PPA). Now in its third edition, Benchmarking Identifiable Intangibles and Their Useful Lives in Business Combinations delivers a compilation of reported, vetted and carefully analyzed data, particularly focused on useful lives of intangible assets as reflected in almost 16,000 purchase price allocations. It reveals what intangibles are being discovered, categorized and valued in specific industries, as well as to provide remaining useful life guidance, noncompete agreement benchmarks, and industry benchmarks. Further, investors will see benchmark data they have never before seen to target companies’ intangible property strength, amortization strategies, and composition of goodwill.
Additional Product Details
This newly released edition has been extensively updated to include an expanded discussion of the various types of intangibles, the applicable financial reporting standards, and an overview of the approaches to valuation. This edition also includes statistical data from significantly more PPAs than ever before and contains new and expanded charts and tables. It is easy to use and provides readers with information and data presented in three ways:
- A review of intangible asset categories complete with detailed descriptions of valuation approaches and checklists of factors to consider.
- Data slices organized by intangible type.
- An analysis of how intangibles valued in business combinations are treated by industry.
Anyone who deals with the value of intangible assets at any level should have this study on their bookshelf now!
Table of Contents
Introduction
Chapter 1. Purchase Price Allocations: Definitions and Authority
Accounting Background and Developments
Criteria for Recognition as an Asset
Intangible Assets and Intellectual Property
Broad Groupings of Intangible Assets
Accounting for the Acquisition of a Business or an Asset or Group of Assets
Reliability of Reported Values of Intangible Assets
Chapter 2. Valuation Approaches and Methods for Intangible Assets
Approaches/Methods
Differences Between Business and Intangible Asset Valuations
Chapter 3. Determining Economic Life, Useful Life, and Amortization Life of Intangible Assets
Economic Life, Remaining Useful Life, and Amortization Life
Financial Reporting Amortization Life
Lifing of Intangible Assets
Summary Insights on Attrition Estimation
Lifing of Intangible Assets—Conceptual Guidance From ASC 350
Factors Contributing to Attrition—General Factors
Chapter 4. Marketing-Related Intangibles
Trademarks and Trade Names
Continued Use
Public Notice
Incontestability
Trademark Strength
Dilution
Counterfeit Risk
Market Dynamism
Legal Life
Noncompete Agreements
Economic Reality
Chapter 5. Customer-Related Intangibles
Customer Contracts
Customer Relationships
Risk
Useful Life
Order Backlog
Sales (Customer) Contract Backlog
Chapter 6. Artistic-Related Intangibles
Copyright
Legal Lives
Transfer of Copyright
Termination of Transfers
Nature of Copyrighted Material
Verifying the Nature of Rights to Value
Special Considerations for Computer Software
Disclosure
Special Considerations for Semiconductor Designs or Masks
Domain Name
Chapter 7. Contract-Based Intangible Assets
Chapter 8. Technology-Based Intangibles
Patented Technology
Unpatented Technology
Computer Software
Sample Approach to Valuing Developed Software
Databases
Trade Secrets
Chapter 9. Indefinite-Lived Intangibles
Goodwill
Assembled Workforce
In Process Research and Development (IPR&D)
Chapter 10. Data Slices by Identifiable Intangible Asset Category
Useful Lives (Years)
Value as Percentage of Identifiable Intangible Assets
Value as Percentage of Total Intangible Assets
Value as Percentage of Business Selling Price
Chapter 11. Data Slices by Industry
Average Intangible Life (years)
Average Intangible Value as a Percentage of Identifiable Intangible Assets
Average Intangible Value as a Percentage of Total Intangible Assets
Average Intangible Value as a Percentage of Sold Business Value
Median Intangible Life (years)
Median Intangible Value as a Percentage of Identifiable Intangible Assets
Median Intangible Value as a Percentage of Total Intangible Assets
Median Intangible Value as a Percentage of Sold Business Value
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