Banking and Investment
Valuation Consulting’s services to banks, lenders, investors and borrowers
Valuation Consulting produced a major UK Government report in 2013 on Banking and IP. Please click here to read the article or continue reading below to find out more about our services.
Credible and professional independent valuation is at the heart of most lending and investment decisions and where most businesses are concerned that means a valuation of the business and often its Intellectual Property (IP). In the 21st Century it is generally recognised that over 80% of the value of most ‘old’ and ‘new’ economy businesses and companies is comprised of IP and intangible assets. As one for the most important advances in wealth creation this fact magnifies risk and liability assessment particularly because accounting does not recognise these assets in published financial statements.
Analysing, valuing and directly securing IP should therefore be a key component of any lending or investing proposition... but it is often ignored. Valuation reflects risk and risk reflects value. Valuation is an important adjunct and consideration for good lending and sits comfortably alongside the established analysis of safety, security, liquidity, viability and the suitability consideration of Credit and Risk Committees.
Valuation Consulting is dedicated to independent valuation and is recognised both in the UK and internationally as the leading independent valuer of businesses and IP. CEO Kelvin King is the co-author of the 2013 landmark report for the UK Intellectual Property Office on the importance of IP for lenders and investors....intended to galvanise lending to IP rich businesses.
Following publication together with other analysis IPO convened round table discussions including Banks, Equity Investors and Insurers, the business advisory community, IP professionals, lawyers, accountants, general commercial advisors and SMEs.
IPO’s reply was published in April 2014, ‘Banking on IP An Active Response’ (click here). It is pleasing to note that there are number of approving and constructive references to the original report and flattering feedback such as “considerable praise for rigour… and agreement with its principal findings and recognition.”
Key action points that IPO will actively promote include, improved understanding of IP and its value to business, SMEs and lenders through its IP for business tools and building upon the recommended common language to form a foundation for templates, guidance and a toolkit.
The ‘Reducing Risk’ section refers to Risk Insurance. Valuation Consulting is currently working with leading insurance professionals developing a non-legal expenses IP insurance product and significantly endorses the view that “insurance can also play a role where a lender provides money to a business on the basis of an IP portfolio and the business subsequently defaults.”
Report co-author Kelvin King, Managing Director, Valuation Consulting comments:
The IPO’s goal, to create the systems to give lenders confidence in assessing the value of IP and the risks involved in lending against it, sit comfortably with my role as Vice Chairman Royal Institution Chartered Surveyors Business Valuation Board. The new Red Book Chapters covering separately intangible asset and business valuation and the Chartered Valuation Surveyor and Registered Business Valuer credential will provide comfort to lenders in the same way Chartered Surveyors have achieved over many decades with Red Book real estate valuations. Firms and individuals so qualified comply with RICS requirements and understand that valuations may be subject to monitoring under the RICS’ conduct and disciplinary regulations.
How Valuation Consulting can help
- Valuation Consulting’s experienced directors can value businesses and companies to inform the decisions of banks and other lenders and investors. Valuation Consulting is on the panel for valuations of many banks
- Directors are Royal Institution of Chartered Surveyors; Chartered Valuation Surveyors and Registered Business and Intangible Assets valuers; Kelvin authored the first Chapters for RICS Red Book on Business and Intangible Assets valuation in 2013. Valuation Consulting prepare Red Book valuations of a business and or separately intellectual property such as trademarks, brands, copyright, patents and design right
- We can value and appraise businesses on a going concern and or distressed scenario in respect of existing loans and investments which may be impaired
- We can value the IP in businesses and with our business partners advise on how this IP can be structured, registered, patented and secured
- We can assess the worth and value the contributions of Key Persons to inform Key Person insurance decisions
- In addition to mature situations for example valuation to support the restructuring of debt of quoted companies, we are also specialist in valuing start up and early stage businesses with valuable IP and know-how
- Provide lenders and investors with professional, independent and timely valuations that can be relied on
- Reducing and pricing risk
- Informing and improving negotiating positions
And for borrowers and businesses seeking finance:
- Valuations and advice on business plans and Information Memoranda will assist in obtaining funding. Importantly these valuations are objective and independent
- Access to pension funds through transfer of IP. We have expertise in valuing IP such as trade marks, copyrights, customer databases and domain names which can then be transferred at market value to pension funds or provided as security thus enabling businesses access to funding from their pension funds
Valuation Consulting has a deep and wide network of professional contacts dealing with IP, including patent attorneys, other legal specialists, accountants, IP analysers, financiers and specialist consultants and together we can provide the solutions to your IP issues