MARKET APPROACH METHOD

market approach method

Student: Elkin Araujo Amaris Tutor: Nelson Jimenez Serrano Date: 20 October 2022

Valuation and Negotiation of Technology Group: 212032_30

market approach method

A market approach is a method for determining the valuation value of an asset (tangible or intangible), based on the sale price of similar items.

The market approach studies recent sales of similar assets, making adjustments for differences in size, quantity or quality.

percentages used to calculate the market approach method

When applying the market focus method, the following ranges of royalties are taken into account:

•Vegetable/agricultural products, between 3% and 5% of net sales. •Research reagents, between 1% and 5% of net sales. •Products for diagnosis, between 1% and 5% of net sales. •Therapeutic products, between 5% and 10% of net sales. •Vaccines, between 5% and 10% of net sales. • Veterinary products, between 3% and 6% of net sales.

How can companies create value from their innovation?

Innovation is the transformation or evolution of an existing product or service into a better one to meet the needs of the current market. When an innovation is carried out, the company generates added value, by investing resources such as time and money, in search of improvement in the products or services provided; it is important to take into account the updated technological means to achieve greater competitiveness and a better positioning in the market.