CASE STUDIES – IP and Intangibles
Valuation of IPs for Restructuring
The Singapore headquartered Group, an MNC undertook a restructuring by consolidating its IPs – trademarks and softwares from multiples jurisdictions to two jurisdictions, i.e., U.S. (for North America) and Singapore (for Rest of the World). The Group required a valuer to undertake the valuation of the IPs for taxation purposes in the U.S. and Singapore.
We were engaged to perform an independent valuation of the IPs. Thorough discussions were held with the Management to determine the most appropriate valuation approach, and the IPs were valued based on market and income approaches. Several cross checks were performed to ensure that the valuation was reasonable, which included inter alia, business valuation. The requirements of IRS in the U.S. and IRAS in Singapore were also considered.
Valuation of Intangible Assets and IP for Fund Raising and Financial Reporting
A technology and communication company, now listed on ASX, had engaged us in relation to fund raising before the listing. We have subsequently performed valuation of Intangible Assets and the IP for financial reporting purposes.
The comprehensive valuation performed (business, the Intangibles and the IP using multiple valuation approaches) by us for fund raising also assisted the company for listing purposes.
During Covid-19, the company’s business suffered, which relies heavily on travel (both business and leisure), and this had to be taken into consideration in the valuation for financial reporting purposes.
PPA for a Solar Photovoltaic Technology Company
We performed PPA for a Malaysian-State Government owned subsidiary for financial reporting purposes due to change in control of the subsidiary company as a result of a step-up acquisition of additional 30% equity interest from 40% equity interest.
The assignment included assessment of purchase consideration, valuation of a power purchase agreement and other intangibles and determination of goodwill (MFRS 3 and MFRS 138).
Valuation of IP for a Transaction
The Group develops software mainly for Banking and Finance industries. It received an offer from a Malaysian bank to purchase the software it developed and maintained for the bank. We were engaged to value the software.
The life of the software was a key assumption and detailed discussions were held with software developers and commercial staff. The software was valued based on cost and income approaches.
Valuation of an IP for Dispute Resolution
Valued an IP, which was licensed to third parties, owned by a Malaysian Palm Oil company for dispute resolution purposes.
The challenging part in this valuation was the lack of information relating to the IP. We interviewed several industry experts and professionals in the Palm Oil industry to develop the assumptions for the valuation.