The Intent
You own intellectual property such as a trademark, patent, proprietary process, or brand and want to license it without underpricing its economic contribution.
How I Solve It
I apply the 25 Factors Affecting Business Valuation to isolate the economic role of the IP within the business. I focus on Factor #9: Research & Development, Factor #18: Marketing (Brand), Factor #11: Future Business Outlook, Factor #4: Return on Investment, and Factor #24: Risk.
The 5 Senses Inspection Report helps confirm whether the IP is actually embedded in operations, customer behavior, and revenue generation.
Experience
It is vital because "How do you value intellectual property for licensing?" is not a mechanical calculation. It is a real-world judgment about risk, control, sustainability, and transferability — and that judgment is where 10–15 years of owner-operator and valuation experience, your gut–brain axis, does the heavy lifting.
Why It Is Not Mechanical
On paper, valuation appears formula-driven. In reality, governance rights, risk concentration, growth durability, market conditions, and stakeholder dynamics materially affect value.
Where Experience Changes the Number
Decisions around normalization, premiums, discounts, projections, and defensibility require judgment formed through lived ownership, negotiation, and financial accountability.
Why the Gut–Brain Axis Matters
The brain performs disciplined financial analysis. The gut recognizes unrealistic narratives, hidden leverage, emotional distortions, and deal risk. Together they produce conclusions that withstand scrutiny.
Protecting Financial Lives
The final number affects wealth, control, solvency, tax exposure, and long-term relationships. Requiring 10–15 years of serious hands-on business and valuation experience ensures the answer is fair, defensible, and durable. See my Experience page.
The Result
You receive a defensible IP valuation that supports sustainable licensing terms and protects long-term value.