Want to create interactive content? It’s easy in Genially!

Reuse this genially

Market approach method

Jose Quimbayo

Created on April 10, 2024

Start designing with a free template

Discover more than 1500 professional designs like these:

Halloween Infographic

Halloween List 3D

Magic and Sorcery List

Journey Map

Versus Character

Akihabara Connectors Infographic Mobile

Mobile mockup infographic

Explore all templates

Transcript

Market approach method

Jose Luis Quimbayo MoyaGroup: 177 April 2024

What is the Market Approach Method?

is a valuation strategy that uses comparable transactions to determine the value of an asset or license. Similar to how homes or used cars are appraised, this methodology is useful for estimating prices in the market.

Benefits of the Method

Convenience and Utility: Makes it easier to determine the value of an asset or license before a negotiation. Active Reference: Allows you to evaluate prices based on recent similar transactions.

Application in Different Sectors

Real Estate and Used Automobiles: Agreed upon prices for similar homes and automobiles serve as a reference for future transactions. Technology Licenses: Although more complex due to the diversity of technologies, the method provides a basis for estimating the value of licenses.

Factors to Consider:

Confidentiality: Commercial details of some transactions may not be public due to competitive sensitivity.Variety of Royalty Rates: Research Reagents: 1 - 5% of net sales Diagnostic Products: 1 - 5% of net sales Therapeutic Products: 5 - 10% of net sales Vaccines: 5 - 10% of net sales Animal Health Products: 3 - 6% of net sales Vegetable/Agricultural Products: 3 - 5% of net sales