Multi-Period Excess Earnings Method

Definition

An income-based intangible asset valuation technique that isolates the cash flows attributable to a specific intangible — most commonly customer relationships or technology — by deducting contributory asset charges from total projected cash flows. The MPEEM is the primary method for valuing customer relationships in purchase price allocation under IFRS 3 and ASC 805, and requires detailed assumptions about revenue attrition rates, operating margins, and the charges attributable to each contributory asset.