Iowa Curves

A graphical representation showing the proportion of an asset population that remains in service over time, plotted from 100% at inception to 0% at the end of the longest-surviving unit's life. Survival curves are used in intangible asset valuation to model the expected decay pattern of customer relationships, subscriber bases, and other wasting intangibles.

The rate at which a company's existing customers cease doing business with it over a given period, typically expressed as an annual percentage. Customer attrition rate is a critical input to the valuation of customer relationship intangible assets under both the multi-period excess earnings method and the distributor method.

The average remaining period over which a group of intangible assets is expected to contribute to cash flows, weighted by their individual fair values. WARUL is used in purchase price allocation to determine amortisation periods for acquired intangible assets and is required disclosure under several accounting standards.

An income approach valuation technique that values a primary intangible asset by isolating the cash flows attributable to it after deducting fair returns on all other contributory assets. MPEEM is the most commonly used method for valuing customer relationships in purchase price allocations under IFRS 3 and ASC 805.

A variant of the multi-period excess earnings method used to value customer relationship intangible assets, which analyses the business from the perspective of a hypothetical distributor that owns only the customer relationships and licenses all other assets from the operating entity. The distributor method simplifies contributory asset charge estimation by modelling a lean distribution business rather than the full operating entity.

A set of measurement guidelines and statistical standards developed by the Organisation for Economic Co-operation and Development for comparing productivity across countries and sectors. The OECD framework addresses the treatment of intangible investment, quality adjustment, and multi-factor productivity, providing the foundation for international productivity benchmarking.

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 financial model developed by Edward Altman that combines five weighted financial ratios to predict the probability of corporate bankruptcy. The Altman Z-Score is used by investors and creditors as an early warning system, though it can understate the financial health of intangible-intensive firms whose assets are not fully reflected on the balance sheet.

How to Value a Patent: 4 Methods + IP-Lending Context

Most patent valuation questions collapse into one of four canonical methods — cost, market, income/DCF, and relief from royalty — and the choice between them is governed by purpose. This guide sets out which method fits which question, the inputs each requires, the defensibility each produces, and how UK IP-backed lenders read the resulting number.

How does the Asset Valuator in Opagio Intangibles work?

The Asset Valuator in Opagio Intangibles values one asset at a time. You choose a method, such as Relief from Royalty, MPEEM or the Cost Approach, enter its inputs, and it calculates a fair value estimate.