Valuing Customer Relationships

About the Course:

Valuing customer relationships is crucial in performing intangible asset apportionment. This highly informative session discusses a variety of factors that impact the quality, predictability, sustainability, and potential of customer assets. This webinar provides an in-depth review–and select accompanying examples–of the following core methodologies for determining the value of customer relationships:

• Multi-Period Excess Earnings Model
• Distributor Method
• With-and-Without Method
• Differential Cash Flow

Key insight regarding the pros, cons, and instances of the best use of the above methodologies was provided.

The following are among the issues discussed during this webinar:

• Determining customer life
• Accounting for backlogs, deferred revenue, and inventory step-ups
• Accounting for customer attrition and net customer gains
• Valuing customers in companies with network effects
• Assessing when customer relationships can have a negative value
• Determining contributory asset charges
• The sequencing of apportionment
• Determining whether or not to tax affect expenses when performing the cost method of customer relationship valuation