Hi all,
I'm trying to figure out a floor support price for a stock I am invested in and I am running into the problem of calculating liquidation value of its intangible assets. In the event of liquidation, intangibles are usually discounted to 0% of their worth as things such as brand name or goodwill become useless. I was wondering if this also falls on patents?
Thanks!
| +81 | Q&A - Buyside Equity Research Analyst/PM | 29 | 3d | |
| +32 | How the heck do you learn all of this stuff? | 5 | 1w | |
| +28 | My experience on the sell side | 20 | 2w | |
| +28 | Getting Frustrated | 10 | 3w | |
| +22 | Clues in Financial Reporting Analysis | 6 | 7h | |
| +18 | Biotech ER vs IB | 16 | 3w | |
| +17 | Am i fairly compensated? | 9 | 21h | |
| +14 | Data Science to PM | 8 | 6d | |
| +14 | Heard they don’t model at Oppenheimer | 10 | 2w | |
| +12 | Why is MM ER comp so bad? | 6 | 4w |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
Patents will most likely still have value. They can be sold off or licensed out in order to repay creditors or equity holders. However, It depends on what kind of patents the company is holding. If the company's patent portfolio consists of one patent, which will expire within the year, you can go ahead and value it as worthless. But if you are looking at a big tech company that holds thousands of patents, it wouldn't be ill advised to do some further research in order to be thorough. Especially because patents have strategic value (beyond the "monopoly" they grant) in the tech sector, they could be the most valuable asset the company owns, and could sell for a large premium to their book value. So I guess the answer is....it depends.
I'm curious to know, what stock are you looking at? BBRY? If you don't mind sharing.
Liquidation value (Originally Posted: 11/15/2010)
I know some PE firms use it, but do any of you bankers use liquidation value for your deals? If so, in what industries or types of companies?
Dignissimos consequuntur deleniti tempore reiciendis et. Enim laboriosam voluptas qui expedita necessitatibus corporis. Ipsa nobis non placeat illo officia animi doloremque.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...