Software appraisal
Software appraisal
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What is software?
Software refers to the non-physical part that refers to a program or set of computer programs which contain data, rules and instructions with the purpose of establishing automatic communication to a computer system or intelligent device, today. , represents a primary tool in any type of process within an organization.
It is important that companies know the value of the software they use, since this value can be established by the income that it generates directly for the companies, or by the economic and operational income that it represents and provides to internal processes.
What benefits does a Software Appraisal have?
Procedures are increasingly important and currently it is one of the most important tools in the organization, because it automates operations and helps solve various problems, since the above must have a precise value of the software and based on it, carry out future decisions
The registration and protection of such intellectual property in Mexico requires reference to federal copyright law and is the international responsibility of the World Intellectual Property Organization (WIPO).
What are the benefits of software appraisal?
- Defense in lawsuits related to software assets (disputes between shareholders, cost justifications of a project, etc.).
- Support and have proof of the purchase or sale of a software asset.
- Obtain financing, guarantees, etc. thanks to the guarantee of the asset value
- Recognition in financial statements and tax deduction.
- It helps by managing some risks to which the organization is exposed, determining the most valuable assets and being able to apply the corresponding measures.
Valuation service structure by type of software architecture:
Methods used for Software Valuation
Cost Approach
For this method, the value of an asset is determined in relation to the current cost of acquiring or replacing software. It is essential to know the expenses that were incurred to develop the program, for example: payroll of the programmers, time invested, dedicated servers, resources, licenses, among others that have been used. Market Approach: In the market approach, the value of an asset will reflect the price at which comparable assets will be acquired in similar situations, in order to compare and display cost estimates, it is necessary to have comparable software rights transactions or, in In your case, a study of comparable software development costs with the same characteristics.
Income Focus
This approach is based on the value of the future cash flows that an asset will generate over the remainder of its useful life or in perpetuity (using a terminal value). The appraisal of said assets is considered part of the direct source of the company's profits. This approach requires a financial analysis of the company, taking into account the profit and loss account, the balance sheet, among others.
Is it necessary to carry out a Software Appraisal?
It is essential to know the added value of the software acquired to make the correct assessment and point out the advantages and disadvantages that they bring to the company: income, expenses, competitive advantage over other organizations in the same line of business, Banks and even the FOCIR. (Capitalization and Investment Fund of the Rural Sector that depends directly on the SHCP) which invest in companies with up to 35% of capital, taking the program as a guarantee.
They can be for various purposes but mainly those of merger, acquisition, purchase and sale and licensing.
ANEPSA GLOBAL
With Anepsa Global it is possible for this and other types of appraisals to be carried out, contact us by leaving your information or sending a message through our social networks, we are here to provide you with advice and guide you so that you know what type of appraisal is best for you.
