Case Study: Intangibles Valuations
Multiple Complex Valuation Projects
2nd Generation Capital, LLC performs complex intangibles-based valuations for its clients.
Q1 2008
In the first quarter of calendar 2008, 2ndG has performed several complex valuation assignments for clients. The details of all of these assignments are confidential, but they indicate the wide range of 2ndG's assignments in this segment.
One 2008 assignment involved the purchase price allocation of intangible assets related to the acquisition of a US firm by a Japanese publicly-traded company. Another involved the valuation of multiple classes of options in a Northeast US based technology company.
Other 2008 assignments related to the valuation of interests in the equity of private firms. One related to a significant but minority interest in a local bank holding company, while the other was a block of equity in an early-stage financial services company with large prospective contracts that were tied to patents with an anticipated (but not assured) issue date during 2008. Another in this group was basically the valuation of a non-control, but blocking, vote of a publicly traded REIT. In this case, 2ndG had to evaluate the potential value required to acquire this minority position, given the premium implied by the strategic value of its potential as a blocking vote.
