The Handbook of Business Valuation and Intellectual Property Analysis

Adam Smith's three sources of wealth creation--land, labor, and capital--have long been the factors that determine what a business is worth. Over the past few decades, however, a fourth factor, intellectual capital, has become increasingly important, yet difficult to quantify in the valuation equation.

The Handbook of Business Valuation and Intellectual Property Analysis features the contributions of experts from leading valuation, accounting, investment banking, and law firms, and provides a comprehensive review of contemporary valuation issues related to businesses, securities, and intellectual property. Topics explored in this important book include:

• Business Valuation Technical Topics
• Business Valuation Special Applications
• Advanced Business Valuation Issues
• Intellectual Property Valuation Issues
• Intellectual Property Transfer Price Analysis Issues
• Intellectual Property
• Economic Damages Issues

Accurate valuation, damages, and transfer price conclusions don't have to be a shot-in-the-dark proposition. The Handbook of Business Valuation and Intellectual Property Analysis presents valuation, damages, and transfer price analyses in a way that is clear, convincing, and cogent for practitioners at every level.

Estimating business, security, and intellectual property values is increasingly difficult in today's transformed economy. From employee stock options to intellectual property license agreements, analysts, investors, accountants, lawyers, and regulators must understand complex new factors and confront important new challenges. In addition, governmental and regulatory changes combine with recent judicial precedent to impact both the theory and practice of valuation. The Handbook of Business Valuation and Intellectual Property Analysis provides practitioners with the latest information and knowledge on key aspects of business and intellectual property valuation, damages, and transfer price analyses. Contributions from today's leading experts, compiled and organized by valuation authorities Robert Reilly and Robert Schweihs, make this the essential volume for anyone looking for answers to transaction, financing, taxation, litigation, and corporate planning questions, such as:

• How should valuation discounts be applied in family limited partnerships, and what is the appropriate evidence for quantification of these discounts?
• What is the relevant regulatory framework for arriving at an arms-length transfer price in intercompany transactions?
• What are the economic attributes and influences that create, destroy, and transfer value in intellectual property?
• How is the value of securities not traded on organized stock markets affected by their lack of liquidity?
• What three methods for valuing S corporations (and other pass-through entities) may now be more accurate than the traditional method, and why?

The Handbook of Business Valuation and Intellectual Property Analysis updates and expands the professional literature related to business/intellectual property valuation, economic damages, and intercompany transfer price analyses. Controversial issues are demystified, and advanced topics are explained in ways that are illuminating for experienced practitioners while still remaining understandable for newer professionals. This latest Reilly/Schweihs anthology is certain to become a welcome and required addition to the libraries of valuation analysts, investment bankers, financial accountants, bankruptcy professionals, tax specialists, financial planners, and litigation attorneys.

About the Authors

Robert Reilly is a managing director of Willamette Management Associates and Willamette Capital. He performs valuation consulting, economic analysis, and financial advisory services including event analyses, merger and acquisition valuations, divestiture and spin-off valuations, solvency analyses, fairness opinions, ESOP feasibility and formation analyses, purchase price allocations, business and stock valuations, restructuring and workout analyses, litigation support analyses, tangible/ intangible asset transfer pricing studies, and lost profit/economic damages analyses.

Robert has prepared financial advisory/economic analyses for merger and acquisition purposes including identification of merger and acquisition targets, valuation of synergistic/strategic benefits, identification and assessment of divestiture and spin-off opportunities, analysis of alterative deal structures, transaction negotiation and consummation, fairness of proposed transactions, initial public offering (IPO) alternative pricing strategies, and design/valuation of alternative equity and debt instruments in a multi-investor environment.

Robert is the coauthor with Robert Schweihs of four other books and the coauthor with Robert Schweihs and Shannon Pratt of two other books. He has contributed chapters to over a dozen anthology textbooks, and he has had over 300 articles published in technical journals. Robert currently serves on the editorial boards of several journals, including the American Bankruptcy Institute Journal, the Journal of Property Taxation, and Valuation Strategies.

Bob Schweihs is a managing director of Willamette Management Associates and Willamette Capital. He provides valuation consulting and economic analysis services relating to business valuation, intangible asset/intellectual property analysis, security analysis, forensic accounting and special investigations, and lost profits/economic damages analysis. Bob has testified as an expert witness on numerous occasions in various federal and state courts. He regularly provides industrial, commercial, institutional, and governmental clients with transactional fairness opinions, solvency/ insolvency opinions, economic analyses, financial advisory services, and litigation support services.

He is the coauthor of Valuing a Business: The Analysis and Appraisal of Closely held Companies, 4th edition (McGraw-Hill, 2000), Valuing Small Businesses and Professional Practices, 3rd edition (McGraw-Hill, 1998), Valuing Intangible Assets (McGraw-Hill, 1999), The Handbook of Advanced Business Valuation (McGraw-Hill, 2000), and Valuing Accounting Practices (John Wiley & Sons, 1997). He has also written numerous articles on valuation and economic analysis topics that have been published in various professional and technical journals.