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  • QuickRead Top Story - Valuation/Appraisal

    Can Brands Be Valued Using Relief from Royalty Method Only? Guidance from AICPA’s 2024 Accounting and Valuation Guide—Business Combinations

    March 12, 2025

    There are various methods used to value intangible assets. The relief from royalty method is based on the premise that there are royalty savings if the acquiror acquires the asset instead of licensing it. The value of the asset is calculated as the present value of after-tax royalty savings over the economic life of the asset. This article delves into the available methods used to value brands. When a company acquires another company, the acquiror may need to perform a purchase price allocation. In essence, the purchase price allocation (PPA) analysis apportions the purchase price to various tangible and intangible…

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