VALUATION AND

TECHNOLOGICAL
NEGOTIATION

212031_33
STEP 4 - IDENTIFY DIFFERENT OPTIONS
TO SOLVE THE PROBLEM
PRESENTED BY:
SINDY YUREINNY RODRIGUEZ NIEVES
CODE: 1.115.739.273

GROUP NUMBER: 212032_33

PRESENTED TO:
KARLA NATHALIA TRIANA

VALUATION AND TECHNOLOGICAL NEGOTIATION

NATIONAL UNIVERSITY OPEN AND DISTANCE (UNAD)
SARAVENA – ARAUCA
MAY 2018
2.1 ACCORDING TO THE A TECHNOLOGY VALUATION MODEL TO SUPPORT
TECHNOLOGY TRANSFER NEGOTIATIONS READING, MENTION THE FOURTH
DIFFERENT TECHNOLOGY VALUATION METHODS AND EXPLAIN THEM.

 The cost approach methods: Is that which calls the future use of technology and
assumes that this value will be the future performance of the technology.

 The market approach method: This method estimates the market price based on
another technology that has already been marketed previously.

 The income approach method: This method considers the sum of the current cash
values, determines the value of the technology according to its viability creating
expected benefits.
 Method of real options: Incorporates the financial concept of options in technology
valuation, and as options are not considered as an obligation but a right, investors have
the opportunity to correct their decision according to future environment.
 2.2 According to The evolution of negotiations of intangible assets
apart from industrial property protection in biotechnology reading,
answer the following:

 (GILLETTE) of Procter and Gamble: Where there was an overestimation of the

intangible assets of goodwill and an underestimation of the identified intangible
asset.

 (PIXAR) of Walt Disney: Once again an overvaluation of goodwill was observed and
intangible assets were underestimated.

 (YOUTUBE) of Google: On the status of the negotiations of intangible assets in

the global part, the valuation made for the brand was extremely low.
 How does the author define the Goodwill?

 The author defines goodwill as the intangible value derived from factors such as:
customers, efficiency, organization, credits, prestige, experience and the position
of the company or business before third parties, a good location, assets or good
quality services, good relations with workers among others; which are
fundamental for the attainment of new clients, among others; This gives the
company an advantageous position in relation to its competitors.
 According to Real Option Valuation of Product Innovation
reading, answer the following:

What is the difference between Real Options and Financial Options?

 The real ones are not negotiable since most of them go hand in hand with the decisions made by the owner
of the company, in comparison with the financial ones.
What types of real options are there? Describe its possible applications.
 Delay: Allows a projection before starting the business or the development of an idea, it is the type of real
option most used to gather information about the project to react.
 Abandon: This type of real option has the option to abandon any project or business where you see that the
risk exceeds 5% where you can determine that the movement of the investment is down
 Expand: It is a real option that can be explored through the parameters previously discussed or that have a
point of reference with which we know that the expansion is viable for the business and that the investment
will recover in a short time.
 Contract: Allows to cede processes or operations in order to reduce processing costs when market
conditions require it.
 Switching: Allows you to close and open an operation
¿Why is it recommended to use real options method despite
traditional valuation methods to value intangible assets?

It is recommended to use the method of real options on the traditional valuation

method are applicable in highly uncertain and dynamic environments where decision
making is flexible and dynamic that previously used the environment as a basis to
project with some skill what could happen during the time that the project lasted,
after the real options were used, value was given to the company and intangible
values were left as one of the conditions to make decisions, the real options can be
used in strategic management
Briefly describe the following methodologies of real options
valuation: Black-Scholes Model and Binomial Tree Model

Black-Scholes Model
 The Black Scholes model is used to establish prices in value-to-pay shares of financial assets, it is
based on the stochastic process, within this model you can find a series of conditions within
which you can find: No dividend payments are made during the validity of the option, the
option can only be exercised at maturity and there are no effects of early exercise, the interest
rate remains constant during the life of the option.
Binomial Tree Model
 This model was popularized by Cox, Ross and Rubistein in 1979. It is based on the argument of
the replicating portfolio, where its actions follow a strictly multiplicative binomial tree, in this
model the price can have only two movements that are ascending or descending, which it is a
constant proportion of the price, the size of the movements up and down (u and d) is a
constant proportion of the price of the shares. This implies a constant variation in the
movements of the share price. The underlying price of the shares follows a stationary
multiplicative binomial process during the successive periods described in the following graph.
 BIBLIOGRAPHY
 (Pages 125 to 126: 2.2. Previous research on technology valuation) Baek, D., Sul, W., Hong, K.,
and Kim, H. (March 1, 2007) A technology valuation model to support technology transfer
negotiations. R&D Management. Retrieved
from:http://bibliotecavirtual.unad.edu.co:2051/login.aspx?direct=true&db=buh&AN=32100351&lan
g=es&site=eds-live

 (Pages 67 to 69) García-Delgado, D. (July 1, 2014). The evolution of negotiations of intangible

assets apart from industrial property protection in biotechnology. Biotecnologia Aplicada.
Retrieved
from:http://bibliotecavirtual.unad.edu.co:2051/login.aspx?direct=true&db=edselc&AN=edselc.2-
52.0-84938803564&lang=es&site=eds-live

 (Pages 26 to 29 and 35 to 56) Kang, Y. (2009). Real Option Valuation of Product

Innovation. Retrieved
from:http://bibliotecavirtual.unad.edu.co:2051/login.aspx?direct=true&db=nlebk&AN=793059&lan
g=es&site=eds-live