What valuation methods does the Opagio platform support?

Full Explanation

The Opagio platform implements the six most widely recognised intangible asset valuation methodologies, each suited to specific asset types and data availability scenarios. The platform's intelligence layer recommends the optimal method for each asset based on its characteristics, but users can override this recommendation if they have a specific analytical requirement. The Relief from Royalty (RFR) method is the default for brands, trademarks, patents, and licensed technology. It calculates the present value of royalty payments saved by owning the asset, using industry-specific royalty rate benchmarks. The Multi-Period Excess Earnings Method (MPEEM) is applied to the primary income-generating intangible asset, most commonly customer relationships. It isolates residual earnings after deducting returns on all other contributing assets. The With-and-Without method values an asset by comparing projected cash flows with the asset in place versus a hypothetical scenario without it. This is particularly useful for non-compete agreements, favourable contracts, and assembled workforce value. The Cost Approach estimates reproduction or replacement cost adjusted for obsolescence, suitable for internal software, databases, and assembled workforce. The Greenfield method models the time and investment required to build the business from scratch to its current state, useful for distribution networks and regulatory approvals. The Market Approach uses comparable transaction data to derive value, applicable when sufficient market data exists for the asset type. For each valuation, the platform provides full transparency into the methodology, key assumptions, and benchmark data sources. Sensitivity analysis shows how changes in key inputs (royalty rates, discount rates, growth rates, attrition rates) affect the result, enabling informed decision-making rather than blind reliance on a single number.

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