IP Valuation The Market Approach

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IP Valuation The Market Approach
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The market approach valuation is a method for
calculating an asset's worth based on the
selling price of similar assets. The market
approach is used to value intangible assets in
the same way that it helps to value tangible
assets. In another way, the value of an
intellectual property or intangible assets is
recognized by examining recent sales, transfers,
and transactions involving similar assets in
similar marketplaces.
What Is the Market APProach?
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Advantages
It is straightforward and involves simple
calculations. It uses data that is actual and
substantial. It is not certain on subjective
forecasts. Disadvantages
Advantages and Disadvantages of the Market
Approach

• It is not easy to check transactions or companies
  that are similar. There is usually a lack of a
  sufficient number of similar companies or
  transactions.
• It is less flexible compared to additional ways.
  The method raises questions on how much
  information is available and how wise the data is.

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1. Whenever you're deciding on an offer price or
asking price for a firm. At that is time,
businesses need it.
The Market Approach Key Uses

1. When you need to defend your business valuation
   to the tax authorities or a legal issue.
2. When a dispute arises, such as a buyout or a
   partner disagreement. You must the value of your
   company.

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Contact Details
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