How would you estimate the value of an intangible asset, more specifically an R&D formulation?
I represent an industrial buyer, who is considering to acquire an R&D formulation from a competitor. The products can be sold to our clients current customers, but will require some minor modifications. The estimated product life cycle of the technology is estimated by our client to ~7 years. The R&D formulation / products are not commercialized yet, and has no brand attached to it.
What methods would you use to estimate the value of such technology? The relief from royalty method appears obvious, but can I sanity check the value with other methods?