Valuation of Technology - Theory and Practice Approaches
18 Pages Posted: 4 Jun 2012 Last revised: 7 Jun 2012
Date Written: April 11, 2012
There are various methods of valuation of technology and intellectual property. Some of these methods routinely used in practice, at the same time as the other methods are not suitable for a business reality. In this paper, I analyzed the actual methods of valuation techniques used for M&A and tried to systemize these approaches. As it turned out, many theoretical approaches cannot be applied in practice. On the other hand, the rules of the market remain true. By studying the cases of theoretical valuation methods in practice, we can find the most acceptable methods of technology and IP assessment.
Keywords: IP, valuation, real option valuation, technology, start-up, technology pricing, asset price, R&D valuation
JEL Classification: D46, G12, G24
Suggested Citation: Suggested Citation