Intellectual Property and Intangible Asset Valuation

The Kanzas company provides independent intellectual property valuation and intangible asset valuation for businesses operating in Ukraine and for international clients: trademarks and brands, patents and inventions, know-how, software and websites, copyright and goodwill. We have been valuing intangibles for over 20 years; our team includes appraisers holding international valuation certificates, and reports are prepared in English on request.

What we value

• trademarks and brands;
• patents, inventions, utility models and industrial designs;
• know-how and trade secrets;
• software, websites and databases;
• copyright and related rights;
• goodwill and other intangible assets recognised in financial statements.

When IP valuation is required

• M&A transactions and purchase price allocation — intangibles often account for a major share of deal value;
• IFRS financial reporting: recognition of intangible assets, impairment testing and fair value disclosures;
• licensing and determination of royalty rates;
• transfer pricing for intra-group use of intellectual property;
• contribution of IP to share capital, including contributions to the capital of foreign companies — we have performed such valuations for contributions to US companies;
• litigation and quantification of damages from IP infringement;
• pledging intangible assets as collateral.

Valuation methods

Our valuations follow the approaches recognised by the International Valuation Standards (IVS) and Ukrainian national valuation standards. The income approach is the primary one for intangibles: the value is derived from the income the asset generates or is capable of generating, including royalty streams under licence agreements. The market approach is rarely applicable, as comparable transactions in intangibles are scarce and no two assets are truly alike. The cost approach is used for assets that do not generate separable income, based on the costs of creating or replacing an equivalent asset.

Documents required

• title documents: trademark certificates, patents, assignment or development agreements;
• licence agreements and royalty data, where the asset is already commercialised;
• information on income attributable to the asset, or the costs of its creation;
• accounting records for intangibles recognised in the balance sheet.

The exact list depends on the type of asset and the purpose of the valuation and is agreed with the appraiser at the start of the engagement.

Questions and answers

Can you determine a royalty rate for licensing or transfer pricing? Yes. We analyse the income attributable to the asset and market licensing practice to support royalty rates used in licence agreements and transfer pricing documentation.

Do you value goodwill? Goodwill is valued as part of a business valuation or purchase price allocation: it represents the excess of the value of a business over the value of its identifiable assets. We perform such valuations for IFRS reporting and M&A transactions.

Do you prepare valuation reports in English? Yes. We prepare IVS-based reports in English for international clients, groups with operations in Ukraine, and cross-border transactions.

Email us or message us in your preferred messenger to discuss your intellectual property valuation task — we will confirm the scope, timing and fee.