Valuation of Customer Relationships
The valuation of customer relationships can be somewhat of a gray area for valuators. In many cases, the common valuation methodologies donâ€™t apply, and the professional neglects to consider whether the determined value is consistent with a market participantâ€™s perspective. While itâ€™s become routine to assume customer relationships are a primary asset, this is not the case across all industries. In a short, but informative report by Valuation Research Corporation, valuators are encouraged to approach customer relationship valuation from a new perspective and cautioned to not overlook the fact that customers often purchase products because of the presence of intellectual property (a favored brand or technology) and not an existing relationship. To read more, click the link below.