Multi-Period Excess Earnings Method (MPEEM)

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.

The US GAAP standard governing the recognition, measurement, and impairment of long-lived tangible and certain intangible assets. ASC 360 requires a two-step impairment test: first, a recoverability test comparing undiscounted future cash flows to carrying value; second, if impairment is indicated, measurement of the loss as the excess of carrying value over fair value.

The amount by which a company's net working capital exceeds the level required to sustain its normal business operations. In M&A transactions, excess working capital increases enterprise value (and therefore equity value) because it represents surplus cash or near-cash resources available to the buyer beyond what is needed to run the business.

A standardised set of actuarial survivor curves developed at Iowa State University that describe the retirement patterns of industrial property. Iowa curves are classified by shape (L, S, R, O types) and average service life, providing a systematic framework for modelling asset mortality.

An approach to measuring goodwill in a business combination where the acquirer recognises goodwill only in proportion to its ownership interest, rather than attributing goodwill to the non-controlling interest. Under IFRS 3, acquirers have a choice on a transaction-by-transaction basis to measure non-controlling interests either at fair value (full goodwill) or at the NCI's proportionate share of identifiable net assets (partial goodwill).

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.

A technique for estimating the weighted average cost of capital by constructing the cost of equity from individual risk components rather than deriving it solely from market data. The build-up method typically starts with the risk-free rate and adds an equity risk premium, size premium, industry risk premium, and company-specific risk premium.

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.

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.

What is the With-and-Without method for valuing intangible assets?

The With-and-Without method values an intangible asset by comparing the enterprise value with the asset versus without it, isolating the asset's contribution.

How do you value a non-compete agreement as an intangible asset?

Non-compete agreements are valued using the With-and-Without method, comparing projected cash flows with the agreement in place versus a scenario where the seller competes freely.