What valuation standard does a lender need, IVS or RICS?
Short Answer
Both. Lenders expect a valuation prepared under IVS 210 for intangible assets and delivered to the RICS Red Book, whose VPGA 6 and Appendix A set out how to value IP for debt financing.
Full Explanation
It is not a choice between IVS and RICS; a credible lending valuation uses both, because they operate at different levels. The International Valuation Standards provide the technical framework: IVS 210 (Intangible Assets) governs how the asset is valued, IVS 106 covers documentation and reporting, and the standards also define the basis and premise of value used. The RICS Red Book is the professional standard that a chartered valuer signs their report to, embedding IVS and adding conduct, competence and reporting requirements. A lender wants the substance of IVS delivered with the discipline and accountability of the Red Book. For IP specifically, RICS published guidance on the valuation of intellectual property rights in 2020, and VPGA 6 addresses valuations of intangible assets. Its Appendix A, on valuations supporting IP debt financing, is the part credit teams care about most. It directs the valuer to use an orderly-liquidation or forced-sale premise for collateral, and it warns that a single most-likely figure must not obscure downside outcomes; sensitivity analysis and value ranges are expected instead. This is why a lending valuation looks more cautious than one prepared for a transaction or for financial reporting. Note that the standards evolve. The 2025 IVS edition renumbered the reporting standard to IVS 106, formerly IVS 103, and the bases of value to IVS 102, formerly IVS 104. A valuation prepared to the current edition should cite the numbering correctly, which is a useful signal that the valuer is working to live standards rather than reusing an old template. Whichever methods are applied, whether Relief-from-Royalty, MPEEM, With and Without, market comparables or cost, the report should state the basis of value, the premise, and the standards it follows. As a next step, when you brief a valuer, ask them to confirm in writing that the report will be prepared under IVS 210 and delivered to the RICS Red Book, with VPGA 6 Appendix A applied on a liquidation premise. That single instruction aligns the work with what a lending credit committee needs and avoids a costly reworking later.
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