Freedom to Operate (FTO) Analysis

A forecasting and valuation technique based on the logistic growth function, which models the adoption or diffusion of technology, products, or innovations as a characteristic S-shaped curve with slow initial growth, rapid acceleration, and eventual saturation. S-curve analysis is used in intangible asset valuation to project revenue trajectories for technology assets, assess the remaining useful life of patents, and evaluate where a product sits in its lifecycle.

A method of testing how changes in individual assumptions — such as discount rate, growth rate, or royalty rate — affect the estimated value of an asset or business. Sensitivity analysis is a critical component of intangible asset valuation, revealing which inputs have the greatest impact on the result and informing risk assessment.

The valuation of a company's existing order book or contracted but undelivered revenue at the measurement date. Backlog is recognised as a contract-based intangible asset under IFRS 3 and ASC 805 when it arises from contractual or legal rights.

An assessment of the sustainability, predictability, and growth trajectory of a company's revenue streams, examining factors such as the proportion of recurring versus one-time revenue, customer concentration, contract duration and renewal rates, pricing power, and the distinction between organic and acquisition-driven growth. Revenue quality analysis is a core component of financial due diligence in M&A transactions and directly impacts the selection of appropriate valuation multiples.

A method of tracking the behaviour of groups of customers (cohorts) who share a common characteristic — typically their acquisition date — over time. Cohort retention analysis reveals whether product improvements are genuinely improving customer retention by isolating the performance of each intake group, and is essential for forecasting lifetime value and revenue trajectory in subscription businesses.

A valuation and risk assessment technique that evaluates potential outcomes by modelling different sets of assumptions about key variables such as growth rates, margins, and discount rates. Scenario analysis is essential for intangible asset valuation because the future cash flows attributable to intangible assets are inherently uncertain.

A valuation methodology that estimates a company's value by analysing the prices paid in comparable M&A transactions. Precedent transactions incorporate control premiums and strategic value that may not be captured in public market comparables.

A method of segmenting customers into groups based on shared characteristics or time of acquisition, then tracking their behaviour and value over time. Cohort analysis is essential for understanding customer lifetime value trends, retention dynamics, and the true unit economics of growth-stage businesses.