Proprietary Tools

CONSOR has developed several proprietary valuation techniques over the last two decades that allow us to provide more accurate assessments of the value of our clients’ intellectual property.  These techniques have proven useful in a broad spectrum of intellectual property valuation issues ranging from tax planning and use as collateral to merger analysis and bankruptcy due diligence.  In addition, they have been tested and readily accepted by courts in litigation and bankruptcy matters, arbitration panels, merger and acquisition analysts and financial institutions.

VALMATRIX^®

The VALMATRIX analytical technique is an integral part of the royalty rate, competitive environment and comparable transaction analyses we perform in many of our valuation projects.  Essentially a relative strength analysis, this technique objectively measures 20 different attributes associated with the intellectual property being valued, the owner of the intellectual property, and the past, intended and potential usage of the intellectual property.  The attributes cover factors such as financial performance, legal strength, marketing activities and competition, among others.  

The attributes included in each VALMATRIX analysis are specific to the type of intellectual property being analyzed and the focus of the project, which provides a great deal of flexibility.  While there is some overlap in key factors, VALMATRIX analyses for trademarks, patents and copyrights are appropriately different to incorporate the differences in these various asset types.  Similarly, a VALMATRIX analysis that measures factors related to litigation matters such as confusion and damages varies somewhat from those performed in other valuation settings.  The flexibility of this tool and the clarity of its conclusions are elements that have contributed to its popularity and success.

VALMATRIX ONLINE: We have developed a simplified online version of the VALMATRIX analysis.  This is the only real time online valuation system available today. It provides a first cut analysis or triage of a client`s IP portfolio.

ValCALC^SM

The ValCALC Methodology, developed by CONSOR in the early 1990s, is useful in measuring the economic benefits provided by the intellectual property of an organization in terms of a market-oriented return.  It reflects the fact that a company’s management requires every asset within a corporation to meet a minimum fair market return.  This is true of assets such as working capital, investment assets, plant and equipment, and inventory.  As with these tangible assets, intangible assets require an appropriate level of return.  Once adequate internal rates of return have been allocated to net working capital, property, plant and equipment, inventory and other tangible assets, the remaining income and return is therefore attributable to the intangible assets.

Briefly, the ValCALC method begins with an analysis of the fair market value of all the coVALMATRIX and ValCALC techniques outlined above, BVE_Q is widely applicable to many valuation situations.  This technique has proven to be especially useful when analyzing potential acquisitions or brand extensions.

IT Value Equation or IVE_Q^SM

Similar to the BVE_Q presented above, the IT Value Equation recognizes each of the intangible assets and incremental value elements of an Internet brand or IT portfolio, and is our preferred approach for valuing new economy brands.  Based on our extensive search of literature in this area, the IVE_Q is the most effective way to value Information Technology.

The traditional view of an intangible bundle having a simple core value does not recognize the incremental values and efficiencies that an IT bundle or Internet brand gathers from all elements of its business model.  An example is shown below:

TOTAL IVE_Q = CBV + IVE₁ + IVE₂ + . . . . + IVE_n

            Where:

The IVE_Q recognizes that IT bundles have two primary components of value:  The core value, and the incremental value elements.  This method recognizes the full value of all intangibles associated with the bundle encompassed by the Internet brand and IT, including formerly overlooked assets such as client services, relationships, linkages and etc.  The incremental values are based on the observable benefits being delivered resulting from the utilization of these brand elements.”