Business Valuations and Intellectual Property A business valuation is not just for a business owner preparing for a sale. There are numerous business and legal situations that require, or benefit greatly from, a detailed valuation. Among these situations are: Several valuation methods and guidelines exist for each type of business, and their application must be tempered by professional judgement and experience. Valuing a business is not an exact science. The valuation process involves comparing several different approaches and selecting the best method, based on the analyst’s knowledge and experience. Valuation engagements range from an informal preliminary indication of value to a formal report including an opinion of value, depending on the purpose of the valuation and its intended use. Why value Intellectual Property? In the last 15 years there has been a marked increase in the amount of companies which have become leaders through the effective creation, extraction and leveraging of their IP through efficient IP management. Nevertheless, in most cases the fact remains that the role of IP in business is insufficiently understood. Small and medium enterprises, the building blocks of many developed economies have been slow to realise the potential of IP management in increasing their competitiveness. The primary reason for valuing IP is to maximise its value and therefore the value of the owner organisation through optimum management decisions.