  IPToolbox Intellectual Property Management Valuation of IP
Valuation of IP
Identifying intangible assets
The table below contains examples of some identifiable and unidentifiable intangibles that may be found within a typical business. If you have not already compiled an IP register, use the table below as a guide to reviewing the intangibles your business already has. Alternatively, revisit the list you made in our section on IP auditing which may help your adviser meet your objectives. For a detailed description of an IP Audit see Conducting an IP audit.
- Patents, trade marks and brand names
- Copyrights and industrial designs
- Franchises and licences
- Distribution agreements
- Newspaper mastheads/publishing rights
- Government quotas
- Covenants not to compete
- Secret processes and formulas
- Information databases
- Computer systems software
- Core technology
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- Quality of the management team
- Know-how
- Marketing expertise/market profile
- Management expertise
- Distribution network
- Economies of scale
- Technical skills
- Program rights
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The value of IP, particularly brand names and trade marks, is now widely recognised. The number of high profile acquisitions and divestments of well-known brand names are increasing this awareness. Historical transactions in Australia involving the sale of businesses with well-known brand names include:
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Edgell - Birds Eye, Herbert Adams |
J R Simplot Company |
Pacific Dunlop |
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Peters Ice Cream |
Nestle |
Pacific Dunlop |
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Smiths, Planters, Samboy,
Cheezels, Twisties |
United Biscuits |
Coca Cola Amatil |
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Hoover |
Southcorp |
Maytag |
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Arnotts |
Campbell Soup Co |
Arnotts Ltd |
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Pauls |
Parmalat Finanziaria SP |
Pauls Ltd |
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James Boags |
San Miguel Corp |
Boag & Sons Limited |
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Spring Valley and Wave brands |
Cadbury Schweppes Plc |
Bonlac Food |
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Steggles |
Bartter Pty Ltd |
Goodman Fielder |
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Rosemount |
Southcorp |
Rosemount Estates Pty Ltd |
Similar trends were witnessed overseas, where the value of IP rose to prominence with the increase of leveraged and management buy-outs during the 1980s.
In the United States, for instance, the business community witnessed several large takeovers of brand-owning companies such as RJR Nabisco by Kohlberg Kravis Robert. RJR Nabisco’s major asset - its brand names including Camel, Ritz, Oreo and Nabisco - did not appear on its balance sheet because those names had been developed internally or acquired over time and were not differentiated from goodwill.
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