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Market Approach to Valuation Based on Technology Transfer Cases in Korea

Asian Journal of Innovation and Policy / Asian Journal of Innovation and Policy, (P)2287-1608; (E)2287-1616
2013, v.2 no.1, pp.97-122
https://doi.org/10.7545/ajip.2013.2.1.097
KIM SANG GOOK
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Abstract

This study secured comparable sales transaction information of technology transfer corresponding to an active market conditions and proposes a method to assess the similarity of technologies with regard to comparability of technology transfer based on these cases information. In order to analyze the association and similarity between target technology and sales transactions, it proposes the significant factors affecting royalty decision and the cosine coefficient method by industry categories. It also proposes the method to adjust royalty, which means that this method unlike the conventional method provides clear standards to valuators in order to revise royalty. Therefore, it offers a solution to the difficulties of applying the market approach for a lot of valuators that have wanted to apply it and objective method to enhance the reliability of the value of intangible asset evaluated by the market approach.

keywords
Market approach, sales transaction comparison, comparability, valuation adjustment, valuation ratio (multiple)

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Asian Journal of Innovation and Policy