EAC was awarded an Intangible Asset appraisal contract for the producer of patented equipment utilized primarily in electrical construction. The patents had been previously acquired and were believed to be impaired above their carrying value. We calculated a fair value of the patents in accordance with Accounting Standards Codification Topic 350, Intangibles–Goodwill and Other (ASC 350).
‣ Industry: Equipment
‣ Standard of Value: Fair Value
Why Patent Technology?
Patents, in general, are considered an important element in any purchase contract and are typically cataloged with the detailed exhibits specifically for clarification and assessment. Patents may yield cost savings, block technical advancement of competitors, and generate revenues due to their exclusive characteristics or via licensing, all of which contribute to the value of the business. They are frequently sold along with tangible property, used together in a given business.