IPAPS™ Framework
The Intellectual Property Asset Pricing System, Australia's only IP-informed business valuation methodology.
What It Is
IPAPS™ (Intellectual Property Asset Pricing System) is Australia's only IP-informed business valuation methodology. It was developed by Dr Maurice Roussety from his doctoral research into intellectual property and franchise goodwill valuation, and it addresses a fundamental gap in traditional business valuation: the systematic treatment of intangible assets.
Conventional valuation methods focus on financial performance and industry multiples, treating IP as an afterthought or a single line item. IPAPS™ instead places intellectual property at the centre of the valuation, scoring IP strength, revenue quality, founder dependency, transferability and commercialisation readiness, and then using those scores to adjust the base enterprise value.
The result is a valuation that reflects what a business is actually worth, not just what its earnings suggest. This matters most when a business has significant hidden IP value that traditional methods would overlook, or when IP weaknesses would reduce a buyer's offer but are invisible on a standard profit-and-loss statement.
Key Components
Maintainable Earnings
Normalised EBITDA adjusted for owner remuneration, market rent, personal expenses and one-off items to establish the true earnings base.
IP Asset Scoring
Weighted scoring across 15 IP asset building blocks to quantify the strength and documentation of intangible assets.
Risk Calibration
Assessment of founder dependency, customer concentration, transferability and commercial risk to adjust the valuation range.
DCF Cross-Check
Discounted cash flow modelling that incorporates IP-driven revenue quality and growth assumptions for validation.
Master Score
A single composite score (0-100) that drives the premium or discount applied to the base enterprise value.
How It's Applied
Applied across all IPAPS™ valuation products: Snapshot, Professional and Certified Business Valuation. The methodology is also taught in the Adviser School™.
What You Get
A defensible enterprise value range that accounts for IP strength and risk
Clear identification of which value drivers are helping and which are suppressing value
An actionable roadmap to increase enterprise value before a transaction
A professional valuation document suitable for advisers, buyers and investors
Related Tools & Products
Want to Apply This Framework?
Book a free strategy call with Dr M to discuss how this framework applies to your specific business situation.
Other Frameworks
ThinkIP™ Framework
The master commercial framework for IP strategy and business value creation.
A-Z IP Assets Framework™
A comprehensive taxonomy of every intellectual property asset type a business can own.
15 IP Asset Building Blocks™
The 15 categories of business IP that drive enterprise value.
IPAPS™ Value Adjustment Engine™
The scoring engine that adjusts enterprise value based on IP strength, risk and commercial potential.