Valuation of Technology - Theory and Practice Approaches

18 Pages Posted: 4 Jun 2012 Last revised: 7 Jun 2012

See all articles by Ofer Vexler

Ofer Vexler

Ofer Vexler, CPA; Harvard Business Review Advisory Council; RIII

Date Written: April 11, 2012

Abstract

There are various methods of valuation of technology and intellectual property. Some of these methods routinely used in practice, at the same time as the other methods are not suitable for a business reality. In this paper, I analyzed the actual methods of valuation techniques used for M&A and tried to systemize these approaches. As it turned out, many theoretical approaches cannot be applied in practice. On the other hand, the rules of the market remain true. By studying the cases of theoretical valuation methods in practice, we can find the most acceptable methods of technology and IP assessment.

Keywords: IP, valuation, real option valuation, technology, start-up, technology pricing, asset price, R&D valuation

JEL Classification: D46, G12, G24

Suggested Citation

Vexler, Ofer, Valuation of Technology - Theory and Practice Approaches (April 11, 2012). Available at SSRN: https://ssrn.com/abstract=2038591 or http://dx.doi.org/10.2139/ssrn.2038591

Ofer Vexler (Contact Author)

Ofer Vexler, CPA ( email )

Ha-namal 4, Haifa
Haifa, 33008
Israel

HOME PAGE: http://www.ovc.co.il

Harvard Business Review Advisory Council ( email )

United States

RIII ( email )

Leon Bloom street 2
Haifa
Israel

HOME PAGE: http://www.ri3.org

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