Estimate the value of a company: book value and intangible assets

The valuation of a company is often a sensitive issue in the event of a capital transaction (fundraising, equity investment, redemption of the shares held by a partner, etc.).

 

In most cases, startups and SMEs call on certified public accountants and/or financial analysts to estimate the value of their company. Then the determination of the value is based on the balance sheet, the assessment of some ratios and sometimes the comparison with businesses in the same sector.

 

This approach is of course incomplete because it does not allow to determine the real value of an innovative company which holds and exploits a portfolio of intangible assets (patents, trademarks, software and know-how).

 

It is necessary that these intangible assets, which are little or partially recorded, are taken into account since they represent a substantial part of the value of a company.

 

It involves identifying the intangible elements that really contribute to the company’s success and growth and not to over-value the firm (see the fiasco with WeWork, valued at 47 billion dollars, down to 8 billion the month after).

 

ValoFin™, a method developed by Brandon Valorisation, allows the evaluation of intangible assets and to determine the objective value of a company on the basis of its economic performances, but also of the quality of its intangible property.

 

Estimate the value of a company_Brandon Valorisation

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