Valuations & Corporate Finance
Intellectual Property
Valuations
Most businesses that hold valuable IP — patents, software, brand, customer data, trade secrets — have never had it independently valued. That means they are negotiating M&A deals, setting licence fees, and structuring group companies without knowing what their most valuable assets are actually worth.
Consult EFC provides ICAEW Chartered Accountant led IP valuations for UK businesses — across patents, trademarks, software, brand, and intangible assets — for M&A, licensing, transfer pricing, HMRC compliance, purchase price allocation, and dispute resolution. Led personally by Kishen Patel, ICAEW ACA, Big Four trained.
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Kish reviews every enquiry personally
What We Value
Six categories of intellectual property
Every IP valuation is tailored to the specific asset, the industry context, and the purpose of the report — whether for a buyer, an investor, HMRC, or a court.
Patents
Registered and unregistered patent rights valued using income and market approaches. Pharmaceutical, medical device, engineering, and technology patents across UK, European, and international jurisdictions.
Trademarks & Brand
Registered trademarks, trade names, and broader brand equity valued for acquisition, licence, spin-off, and intercompany transfer purposes. Consumer, B2B, and digital brand architectures.
Software & Technology
Proprietary software platforms, algorithms, databases, and technology assets. Particularly relevant for SaaS companies, fintech platforms, and technology businesses being acquired or seeking investment.
Customer Relationships
Customer contracts, order backlogs, and customer relationship intangibles separately identified and valued under IFRS 3 purchase price allocation. Particularly important in B2B and SaaS acquisitions where customer tenure drives value.
Trade Secrets & Know-How
Proprietary processes, formulations, methods, and know-how that provide competitive advantage without formal registration. Increasingly important in manufacturing, life sciences, and professional services acquisitions.
In-Process R&D
Research and development projects that are underway but not yet complete at the acquisition date, separately identified and valued under IFRS 3. Particularly relevant for pharmaceutical, biotech, and technology acquisitions.
When You Need an IP Valuation
Six situations where IP valuation is essential
IP valuation is not just an M&A exercise. It arises in tax compliance, investment rounds, group restructuring, and litigation — often at short notice.
01
Mergers & acquisitions
When buying a business where IP is a significant asset — technology platforms, patents, brand — you need an independent valuation to negotiate price, structure earnouts, and comply with IFRS 3 purchase price allocation requirements. Sellers need a defensible figure to protect against price chips in due diligence.
02
Licensing & royalty rate setting
Licensing IP to third parties or related companies requires an arm's length royalty rate. An independent IP valuation and royalty rate analysis provides the evidential foundation for licensing agreements and protects both licensor and licensee in any subsequent challenge by HMRC or a commercial counterparty.
03
Transfer pricing & group restructuring
When IP is transferred, licensed, or migrated between connected entities — including to offshore holding structures or between group subsidiaries — HMRC requires that the intercompany pricing reflects an arm's length value. A professionally prepared IP valuation under OECD guidelines is the primary defence in a transfer pricing enquiry.
04
Investment & fundraising
When IP is a material component of business value — as it frequently is in technology, pharma, and media companies — investors want to understand what the IP is worth independently of revenue projections. An ICAEW Chartered Accountant prepared IP valuation adds credibility to fundraising materials and reduces investor diligence friction.
05
Dispute & litigation support
IP infringement claims, shareholder disputes, and licensing disagreements frequently require expert financial evidence on the value of the IP in dispute. Consult EFC prepares expert reports and quantum of damages analyses for use in arbitration, mediation, and court proceedings.
06
Balance sheet & IFRS reporting
IAS 38 and UK GAAP require that intangible assets acquired in a business combination are separately recognised and valued on the balance sheet. Annual impairment reviews under IAS 36 also require a supportable assessment of recoverable amount. Consult EFC provides the valuations that auditors and preparers need to comply with these requirements.
Valuation Methodology
Three approaches — applied to your specific IP
The right methodology depends on the type of IP, the available data, and the purpose of the valuation. Most defensible reports use a primary method corroborated by a secondary check.
Income Approach
The most widely used method for IP with identifiable economic benefits. The relief-from-royalty method values IP as the present value of royalties the owner is relieved from paying by owning the IP outright. The multi-period excess earnings method (MEEM) is applied to customer relationships and other primary intangibles where cash flows can be directly attributed.
Appropriate for: patents, software, trademarks, customer relationships, in-process R&D with identifiable revenue streams.
Common variants
Relief from Royalty • Multi-Period Excess Earnings (MEEM) • Incremental Cash Flow • Probability-Adjusted DCF
Market Approach
Values IP by reference to observable market transactions involving comparable IP assets. The Comparable Uncontrolled Transaction (CUT) method uses arm's length licence agreements between unrelated parties to benchmark royalty rates. Requires access to licence transaction databases and sector expertise to identify and adjust truly comparable transactions.
Appropriate for: royalty rate benchmarking, transfer pricing, trademark and brand valuations where market licensing data is available.
Common variants
Comparable Uncontrolled Transaction (CUT) • Comparable Uncontrolled Price (CUP) • Guideline Transaction Multiples
Cost Approach
Values IP at the cost to recreate or replace the asset. The reproduction cost method estimates what it would cost to build an identical asset from scratch. The replacement cost method estimates the cost of an equivalent substitute. Most useful when income or market data is not available, or as a check on other methods.
Appropriate for: trade secrets, know-how, early-stage technology, and internally developed software where future revenue is uncertain.
Common variants
Reproduction Cost • Replacement Cost • Cost Avoidance • Greenfield Development Cost
Why Qualification Matters
An IP valuation is only as good as the person who signs it
IP valuations are routinely challenged — by buyers in M&A due diligence, by HMRC in transfer pricing and compliance reviews, and by opposing parties in dispute proceedings. A valuation prepared by an unqualified adviser or an AI-generated tool will not withstand professional scrutiny.
As an ICAEW Chartered Accountant, Kishen Patel is bound by professional ethics, subject to continuing professional development requirements, and professionally indemnified. Every IP valuation report is prepared to the standard that auditors, investors, HMRC, and courts expect from a qualified professional.
Big Four training means Kish applies the same structured, methodology-driven approach to IP valuation that large corporate finance teams use — without the large corporate fee.
Verify ICAEW membershipICAEW Regulated
Bound by the ICAEW Code of Ethics and professional conduct rules. Cannot produce inflated or unsupportable valuations.
Methodology-Driven Reports
Every report documents the methodology, assumptions, data sources, and sensitivity analysis — to the standard auditors and HMRC require.
Fixed Fee — No Surprises
Full cost agreed before work begins. No percentage of value. No scope creep. Kish leads every engagement personally.
Litigation-Ready Reports
Where required, reports are structured to comply with CPR Part 35 expert witness requirements for use in UK court and arbitration proceedings.
Common Questions
Frequently asked questions
IP valuation is a specialist discipline. If your question is not below, book a free call and Kish will give you a direct answer.
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Kish Patel ACA
ICAEW Chartered Accountant • Founder, Consult EFC
"Most of the businesses I advise have never had their IP independently valued. Once they do, they almost always discover it is either significantly more valuable — or structured less efficiently — than they assumed."
ICAEW Regulated
Professional ethics, indemnity insurance, and CPD obligations. Not a consultant — a regulated professional.
Fixed Fee — Agreed Upfront
Scope and cost confirmed before work begins. No percentage of value, no hourly billing surprises.
Kish Leads Every Engagement
No junior analysts. The person you speak to is the person who prepares and signs the report.
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