Customer relations are ongoing connections between a company and its customers. Two conditions must be satisfied for customer relations to be identifiable and separable: the expectation of repeat purchases in the future, and the existence of information gleaned about the identity of customers and their purchase histories. If so, customer relations are separable assets that can be sold, transferred, licensed, etc.
Customer relations constitute on average 21% of the intangible value of businesses. For 55% of all businesses, customer relations represent their most important (or primary) intangible asset.
of all intangible assets
No valuation standard and no valuation approach prevents you from supporting your customer valuation with market data.
MARKABLES is the only vendor worldwide providing comparable data for the valuation of customer assets. MARKABLES has the valuation data of more than 11,000 different customer portfolios on file.
For each customer portfolio case, MARKABLES reports detailed information including the following, and more:
Other intangible assets and meaningful ratios
Customer-related excess earnings margin
Acquiror value data
Customer-related profit split
EV / revenues
Useful life and attrition rate