|
Valuation and Appraisal is Our Full Time Business
How to Value Intellectual Property
Business Valuations are Generally $1,000 to $2,500.
1-800-606-0310
Business Valuation
Save
Thousands of Dollars in Unnecessary Fees! |
CUSTOMER
REFERRALS
TSX - Fair Value Report.
When a small publicly traded TSX listed company needed a report on fair value to meet TSX
requirements they turned to Eric Jordan at Pin Services
Ltd. You can
view the opinion on fair value report
as
part of the documentation for the Securities Commission.
CrossFit Gym
When Evan Lindsay needed to understand the value of his
gym he worked with Eric Jordan. (LINK PENDING) "Working with Eric was a productive experience.
He listened, was direct and was transparent, providing great feedback on my business.
The final report was professional and conveyed the value that my company had built for the last 5 years.
I look forward to working with Eric again in the future and highly recommend his services."
-Evan Lindsay, Saskpro CrossFit.
Alberta Treasury Branch Alberta Treasury Branch
needed a business valuation before they could provide Wendy
Coombs a business loan for the purchase of another
medical clinic business in Calgary. (LINK PENDING) "We recently
applied for a bank loan to finance the acquisition of a
medical clinic in Calgary Alberta. We have been
customers of Alberta Treasury Branch for 18 years and
despite having many prior business loans, for the first
time ever they required a Business Valuation completed by an experienced
business evaluator. Banks are becoming even more risk adverse and the
requirements for financing increase with respect to their due diligence.
We presented Eric Jordan from Pin Services Ltd.. The Alberta Treasury Branch
agreed Eric had the experience they were looking for in an evaluator.
His business valuation was very thorough and not only did it get us
the financing we needed, it was very useful in facilitating the negotiations
and securing a fair price for our business purchase."
-Wendy Coombs CEO, VP Business Development Momentum Health. |
|
|
|
How to Establish the Value
of
Intellectual Property and
Intangible Assets
Intangible Assets, also known as Intellectual Property, account
for a large percentage of the assets of a business. As this
asset class grows it receives more and more attention.
Understanding this value is an important function for good
management. For accounting, planning and insurance purposes
every company needs to know what they have and what it is worth.
In November 2014 we successfully completed a Fifteen
Million Dollar Intellectual Property Valuation in support of a
Ten Million Dollar loan. This is a tough marketplace but
properly valued and presented businesses win the day. Uber,
which is almost all Intellectual Property, has a market
capitalization of Eighteen Billion Dollars which is equal to the
assets of Hertz and Avis combined.
A couple of years ago
Bitcoin was selling for between $20 and $150. I tested my
skills of valuing Bitcoin as intellectual property and correctly
predicted that it could go up to $1,000 which was about 10 times
what I paid. (And yes, I did make some money!) The value to
Bitcoin was always the SYSTEM OR TECHNOLOGY they employed.
Today someone is figuring out how to employ that same
Bitcoin technology to regulate or control internet traffic and
charge for it. The underlaying value I saw two years ago.
If the big ISPs can use this technology they will have a way to
charge for the flow of information. If true, the big ISPs are
going to be very valuable.
www.coindesk.com/bitpay-project-aims-networks-bitcoin-currency/
|
Small Companies Too:
Intellectual Property plays a larger and larger role in the value of even small businesses today. WHERE is your business website when someone searches for the service or product you sell in your area?
This BASIC ELEMENT of SEARCH greatly affects the visibility and the value of your business.
Other Intangible Assets:
A strategic buyer may have the sales force and the money to expand but they might need or want your company's intellectual property. This gives you value and leverage if you can document and quantify what you have.
-
What processes does your company have that others would value and want?
-
Your workforce may have been assembled over years and be a valuable asset.
-
Your client list may be valuable to others.
-
Your ongoing contracts may have a lot of value.
-
What skill sets do your employees have and how loyal are they to the company?
-
How are you harnessing technology in your business?
-
How do you control the combined knowledge in your company and do you do it better than the competition?
-
Who is the competition you are ahead of and why?
|
|
You are likely reading this page because of "search" so you know we
understand the basic element for intellectual property value in businesses,
both small and large. Business Valuators in
general are only just starting to understand the value to all of this in the larger picture.
We believe we are ahead of the curve, most especially in how IP or Intellectual Property affects the
value of a small business.
Scroll down to read the type of questions
you can expect during a regular business valuation intake session.
|
|
|
|
|
|
|
|
Do You Know What YOUR Intellectual Property is Worth? |
|
Do you know what your business is
worth?
Do you need to establish value for
financing?
Do you want a valuation written in
plain language?
You'll work directly with Eric
Jordan, the company owner, who has more than 40 years of
business experience. |
| |
Eric Jordan, President |
Free consultation.
Call or email now!
1-800-606-0310
eric@pin.ca
|
Eric Jordan CEO of PIN understands Intellectual Property
and the Valuation of Intangible Assets as well as, or better
than, anyone else in the industry.
Email: eric@pin.ca Phone:
250-386-0108 Toll Free: 1-800-606-0310
|
How to value your business; the valuation or appraisal is a process.
Once we have all of the information we need, via an intake conference, your valuation report will be delivered to you in
approximately two business days. We refer to our evaluation as a Value Statement.
|
WE COME AT THIS FROM FOUR DISTINCT VIEWPOINTS:
EXISTING ACCOUNTING:
The view from an accounting perspective; relying on the the numbers created by the clients'
existing accountant, then finding the real "normalized net income" through a
proprietary process.
RISK:
Looking from the insurance viewpoint and assessing risk to buyer.
HUMAN CAPITAL:
From the point of view of a resume broker; assessing the value of
the
human capital involved in the business.
INTELLECTUAL PROPERTY AND PROPRIETARY PROCESSES:
Understanding, assessing and estimating the intellectual property and proprietary knowledge
that is transferred with the business. Change of ownership and management does matter. |
|
INTAKE CONFERENCE:
This is a 2 to 3 hour conference call that can include as many stakeholders as required.
As no two businesses are the same, the questions will vary.
Below is a list of some of the areas that we will cover. |
|
(1) Why:
What is the purpose of the valuation?
(2) Who: Value with whom owning and managing the
business?
- Your current value with current ownership and management?
- Value with a new business owner with less experience?
- Value with buyer like you with similar business management experience?
- Value with an upscale buyer who has the financial ability to build on what you have accomplished in your business?
- These WHO questions make a huge difference to the final appraisal.
(3) Normalized Net Income:
I must understand what questions to ask to be able to determine the real 'Normalized Net Income.'
This figure is seldom what you see in your year-end accounting, which is generally calculated to determine the lowest amount of tax legally payable.
- Owners and families are often overpaid or underpaid depending upon individual tax situations.
- What would the owner have to pay someone to fill his/her position in the
business?
- There are about twenty more normalizing questions that must be answered and these can be different depending upon the answers given to previous questions.
This is where experience counts.
(4) Leasehold Improvements:
These need to be covered regardless of whether the building is leased or owned.
It is important that the right questions are asked in any comprehensive appraisal.
(5) Hard Assets:
Determining fair market value.
Book value means nothing if we want to know the true value of the business.
- Business Equipment
- Business Inventory
(6) Intellectual Property:
Copyright, Proprietary Processes, Business Operation Manuals.
These are your operating manuals; the step by step instructions on how to run your business and how to train others to operate your business.
This greatly affects value; positively if it you have them and negatively if you don’t have them, and much more negative if it would not be
possible for you to have a practical manual that would allow for your business to continue if you were unable to function.
(7) Value of Cash Flow:
This is calculated by finding the normalized net income then multiplying it by a ratio determined by risk, opportunity, and the intellectual property affecting the means to produce.
(8) Soft Assets:
Do you have intellectual property that has fair market cash value outside of your business?
(9) Risk:
What are the possible risks to your business?
No appraisal can be completed without properly understanding risk.
- How long is the business lease?
- Are there reasonable options to extend the lease?
- If the owner of the building also owns the business has the rent been paid at market rates?
- Are you in a one industry area, or is the area changing?
- Are industry trends your friend or enemy?
- Are there any Government regulations?
- Staffing?
- Competition and pricing challenges?
- Changes to accessibility? Road changes?
- How good is the succession plan, and do you even have one?
- Operations and Training Manuals - How complete?
- Additional questions depending upon the answers given.
(8) Value of Cash Flow:
This is calculated by finding the normalized net income then multiplying it by a ratio determined by risk,
opportunity, and the intellectual property affecting the means to produce the cash flow.
Depending upon the complexity
of your business, you can expect 48 hours to get a report back to you.
As you can well understand, no computer program, gross sales or other
rule of thumb guessing techniques are going to be helpful for you in determining the real value of your restaurant. In fact, these techniques could harm you.
Valuation and appraisal is our full time business. We do a lot of business valuations.
|
How to Value Intellectual Property
Value Statements are Generally $1,000 to $2,500.
Call for exact pricing for your situation.
Eric Jordan, President |
Free consultation.
Call or email now!
1-800-606-0310
eric@pin.ca
|
PAYMENT BY VISA, MASTERCARD, AMERICAN EXPRESS or DISCOVER.
Visit our main website at
www.pin.ca
to browse all of our
business opportunities and homes for sale
by owner.
How to Value Intellectual Property Valuation.
|