What data is needed for an intangible asset valuation?

Full Explanation

The data requirements vary by asset type and valuation method, but a comprehensive data request for a PPA typically includes the following. Financial data: 3-5 years of historical P&L and balance sheet, management's financial projections for 5+ years, revenue breakdown by product line and customer segment, and gross margin analysis. Customer data: customer list with annual revenue per customer for 3+ years (to calculate attrition rates), customer concentration analysis (top 10/20 customers as % of revenue), contract terms and renewal rates, and net revenue retention rates for subscription businesses. Technology and IP data: patent portfolio details (filing dates, expiry dates, jurisdictions), R&D expenditure history and roadmap, software development cost breakdown, and technology stack documentation. Brand data: marketing expenditure history, brand awareness metrics, domain authority and web traffic data, and any existing brand licensing arrangements. Workforce data: employee headcount by function and seniority, average compensation and benefits, recruitment costs by role, and training programme costs and duration. Deal data: purchase agreement with consideration breakdown, contingent consideration terms, non-compete agreement details, and assumed liabilities. The quality and granularity of input data directly affect valuation accuracy. Companies that maintain clean customer cohort data, documented IP portfolios, and detailed cost accounting produce more defensible valuations with narrower ranges of uncertainty.

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