SP&H valued the intangible assets of a bankrupt wastewater technology company for strategic planning purposes.

Case Background:

SP&H was retained to value various intangible assets of a bankrupt wastewater technology company (the "Company") to determine if our client should fund the company in exchange for equity. Through extensive due diligence, we identified the following intangible assets owned by the Company: marketing intangible assets (i.e., the Company's name and the Company's registered internet domain name), engineering patents and licenses, customer lists and contracts, and the Company's leases.

In order to determine the value of each of the above mentioned intangible assets, SP&H conducted an in-depth analysis of the economic benefits, if any, that could accrue to a potential buyer of the intangible assets.

In performing our valuation, SP&H analyzed the following:

• Transferability of the intangible assets (i.e., could the ownership of the assets be transferred to another party)
• Expected life of the intangible assets
• Potential costs to enforce patents, trademarks and contracts
• Future profits that could be generated by the intangible assets
• Potential buyers for the intangible assets
• Industry trends
• Competition and substitute products
• Current economic conditions and the economic outlook

The following represents our conclusions:

SP&H identified and determined a fair market value of the following intangible assets:

Intangible Asset Fair Market Value Marketing-related: Internet Domain Name $100 Company Name $0   $100 Engineering-related: Patent 1 $0 Patent 2 $383,000   $383,000 Customer-related: Client Lists $0 Various Customer Contracts $100,000   $100,000 Contract-related: Manufacturing Agreement $0 Distribution Agreement $0   $0 Location-related: $0 Total Intangible assets value: $483,100