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Rules Of The Road: Valuing Commercialized Software-Based Technology

David Drews

Dwight Olson

Companies that develop and own software often have the need to communicate the business value of their software in a meaningful way. The question “what’s your software worth” often arises in many different contexts, such as when acquirers/investors are interested in assessing their options, licensees desire a reasonable exclusive royalty/license price, or stockholders look to measure the company’s management performance, to name just a few. When considering the value context of software, it is important to include all appropriate elements of value in the assessment and include all the software product components.

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