Valuing intangibles companies – An intellectual capital approach

Patrick H. Sullivan Jr (ICM Group, Palo Alto, California, USA)
Patrick H. Sullivan Sr (ICM Group, Palo Alto, California, USA)

Journal of Intellectual Capital

ISSN: 1469-1930

Publication date: 1 December 2000

Abstract

There is a dramatic increase in the number of companies whose value lies largely in their intangible assets; with relatively little or no value associated with their tangible assets. Traditional methods of valuation, based on accounting principles, where the value of the firm’s assets is a portion of the value, have systematically undervalued companies such as these. This article discusses the problem of valuing intangibles companies and suggests two approaches to determining their value. It also describes two common circumstances where company value is desired and discusses how value may be determined using a non‐traditional perspective on the company along with traditional methods for valuation. The two circumstances examined are the going‐concern value and the value under merger or acquisition circumstances (recognizing that these two circumstances produce very different valuations for the corporation).

Keywords

Citation

Sullivan, P. and Sullivan, P. (2000), "Valuing intangibles companies – An intellectual capital approach", Journal of Intellectual Capital, Vol. 1 No. 4, pp. 328-340. https://doi.org/10.1108/14691930010359234

Download as .RIS

Publisher

:

MCB UP Ltd

Copyright © 2000, MCB UP Limited

Please note you might not have access to this content

You may be able to access this content by login via Shibboleth, Open Athens or with your Emerald account.
If you would like to contact us about accessing this content, click the button and fill out the form.
To rent this content from Deepdyve, please click the button.