Investment in Iran & Intangible Assets Valuation

We live in an era dominated by technological innovations. One of the most attractive and interesting targets for investors is to invest in Tech-based companies and businesses. Nowadays, intangible assets comprise most of the value of Tech-based companies. Therefore, understanding the quality and value of these assets is critical to investment decisions – especially in times of market unpredictability such as we are experiencing now.

Considering The Future Of Business

A recently conducted research shows that 95% of senior investment decision-makers agree that a company’s intangible assets contain important information about the future strength of a business model. 88% also agreed that conventional valuation methods (such as discounted cash flow) are inadequate without thorough consideration of intangible assets.

These numbers are extremely high because intangible assets today are the key driver of profitability and growth within an organization. Looking at business performance and potential from the intangible asset point of view helps focus attention on those aspects of a business that are critical to future performance but which are not accurately reflected in financial statements and other business reports.

Therefore, investment decisions should give additional weight to the quality and strength of a business’s intangible assets. These assets include data, brands, content, code, trade secrets, and industrial know-how, internet assets, design rights, contractual rights, regulatory approvals, and standards compliance and plant variety rights among others.

A key challenge for investors is that while these assets are the primary indicators of business value, they rarely show up on the balance sheet and when they do, their recorded value is often incorrect, and sometimes these assets are not fully protected by law.

Intangible Assets Valuation in Iran

In 2017, the Iranian Government issued a directive, governing intangible assets valuation in public project investments and cooperations with governmental bodies. According to this directive, high-standard firms can receive authorization permits to conduct intangible asset valuation services for investors. Since May 2017, only 5 Iranian firms have managed to obtain this permission (known as SADAN permission).

Dadflamingo is the only law firm in Iran that holds SADAN permission for intangible assets valuation and has conducted due diligence and valuation services for its clients which totally amounts to more than 5.7 Billion USD. 

We at Daflamingo, provide our clients a full perspective of their investment projects by implementing comprehensive legal, financial due diligence and valuation.