Launch of market comps for the valuation of technology assets

In a few days, MARKABLES will launch a new set of comparable data, ratios and royalty rates to support the valuation of technology assets. This dataset comprises 3,000+ different cases of product technology, and another 2,800+ different cases of software.

In the run-up to the launch, we presented various extracts from our database. We started with an overview of the?most valuable technology portfolio, and then showed sector snapshots of?car manufacturers?and?LED producers.

We conclude this little overview on technology intangible assets with a benchmarking at the very top level of hi-tech. For this, we composed a peer group in the semiconductor sector, comprising 21 acquired semiconductor businesses with revenues from $111 to $8,500 million. Typical royalty rates on technology are from 20% to 25% on revenues on average. That is a pretty bold number. The other tech-related ratios are impressive, too. Technology accounts for 25% of an enterprise value based on as much as 3x to 4x revenues. It is fair to say that technology is the dominating asset in the semiconductor sector, and that such businesses are acquired for the technology asset in particular.

MARKABLES is a commercial database for the valuation of intangible assets, with probably the widest selection of comparable cases. Sub-segments cover trademarks, customer relations, technology, software and goodwill. The database is accessible under various plans, from flexible one-offs and long-term high-volume users. Please feel encouraged to find out if we are different, and why we are better.