These assets are valued for a variety of purposes including equity investment, loan collateral, purchase price allocation, estate and gift tax, and charitable contribution. HVA is often engaged to determine reasonable royalty rates or license fees for the use of such intangible assets.
A company's brand is often its most valuable asset. Unlike trademarks, which are legally defined and protected intangible assets, brands are not recorded on the balance sheet unless they have been acquired. However, financial markets usually recognize the value attributable to strong brands. HVA has conducted extensive research in the domain of brands and branding activities, and performed various brand valuation assignments.
HVA has been engaged to value some of the highest income generating privately held patent portfolios in the country, particularly in the area of technology patents. Our knowledge of patent valuation metrics gives HVA a solid understanding of the valuation of these assets. We also have substantial experience in valuing new patents that have yet to generate income. These require more creative application of established valuation approaches than mature patents.
Music and Film Rights
HVA has been engaged to value many of the most recognizable music catalogs and film libraries in the world. On several occasions, these valuations were performed for estate purposes and withstood the scrutiny of the Internal Revenue Service. In other cases, we have been engaged to perform valuation analyses to assess the viability of future film projects for financing purposes.
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HVA has performed valuation work on highly complex licensing rights, considering such factors as the scope, exclusivity, time, territory, transferability, and other contract terms related to the rights. As an extension of this expertise, we are often called upon to establish market royalty rates or license fees. We advise clients both in negotiations with third parties or in situations where there is a need to establish an arm's length basis for related party transactions. HVA provides royalty rate and licensing evaluation services to both public and private companies in various industries, including entertainment, software, apparel, consumer products, and information services. These services include a comprehensive analysis of the returns generated by comparable intellectual property, industry trends regarding the licensing agreements negotiated, and the identification of the most significant factors influencing royalty rates.
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Research & Development
HVA has an expertise in the valuation of technology under development. Any technology can be valued with our model, which is based on the income approach. In the past, HVA has been retained to determine the fair market value of in process R&D related to medical devices and pharmaceuticals for fairness opinions, financial reporting and transaction purposes.