Brand & Intangible Asset Valuation

Valuation of a brand, trademark, patent, goodwill, or other intangible asset for a purpose recognised under company law is governed by section 247 of the Companies Act, 2013, read with the Companies (Registered Valuers and Valuation) Rules, 2017.

Section 247(1) requires that where a valuation is required under the Act in respect of any property, stocks, shares, debentures, securities, goodwill, or any other assets, or of the net worth of a company or its liabilities, it must be conducted by a person registered as a Registered Valuer, and in the manner prescribed by the 2017 Rules. This requirement has been mandatory since 31 January 2019, the date from which valuations under the Companies Act could only be undertaken by valuers registered with the Insolvency and Bankruptcy Board of India (IBBI) under the asset class "Securities or Financial Assets" (for intangible/brand valuations falling within that class) or the relevant applicable asset class.

Section 247(2) requires the Registered Valuer to exercise due diligence, act impartially, and disclose any conflict of interest; section 247(3) prescribes penal consequences for a valuer who contravenes the section or the rules, including a fine and, in cases of fraudulent intent, imprisonment.

Brand and intangible valuations under this framework are typically required to support a Companies Act transaction (e.g., a share swap, merger, or related-party transaction where the intangible forms part of the consideration or net-worth computation), and separately may be commissioned for financial reporting (Ind AS 38/103 purchase price allocation) or transaction advisory purposes, which do not themselves mandate a Registered Valuer but are commonly aligned to the same methodology for consistency.

This service covers valuation of brand and intangible assets using internationally recognised methodologies (income, market, or cost approach as appropriate), issued through, or reviewed against, the Registered Valuer framework where the valuation is intended to support a Companies Act purpose.

Intangible assets — brands, patents, customer contracts, non-compete agreements, technology platforms — often constitute the majority of enterprise value in services, pharma, and technology businesses, yet they remain off the balance sheet unless acquired. Our intangible asset valuation covers: brand valuation using relief-from-royalty or multi-period excess earnings method; patent and IP valuation; purchase price allocation (PPA) for M&A transactions (Ind AS 103); impairment testing under Ind AS 36; and royalty rate benchmarking for transfer pricing. Deliverables meet Ind AS, ICAI valuation standards, and SEBI registered valuer requirements.