Software valuation

Estimate the value of a software

Software, like apps, qualifies as intellectual property. It is possible to estimate their value in the same way as for a trademark or a patent. Software is also an intangible asset whose valuation is useful in a business development strategy.

 

In which cases should a software be valuated?

It is necessary to know the financial value of a software in particular in the following cases:

  • contribution to the capital of the company
  • fundraising
  • disposal or acquisition of the software/computer application
  • transfer of a company or creation of a joint venture.

An accurate valuation enables to increase the value of a company and bring convincing arguments during negotiations with investors and possible partners.

 

What are the parameters evaluated in a valuation study?

Several criteria are taken into account when working on a valuation study, including:

  • the technical aspects of the software/application, differentiating elements, its protection
  • its market, organization, volume and specificities
  • the assessment of the economic and financial parameters related to its exploitation
  • the associated risks, etc.

These data are taken into account and processed using our proprietary method, ValoFin, and enable us to give the value of the software.

 

At the end of the mission, a report including our conclusions, with figures and our possible recommendations, is presented to the company’s managers during a dedicated meeting. This study can be used in future negotiations.

 

Brandon Valorisation has developed a financial valuation method for intellectual property rights which is adaptable to your specific needs. For more information, please consult our dedicated pages:

 

 

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