Economic Analysis of Inter-company Service Pricing
The Valuation Group provides transfer pricing and economic analysis for inter-company service arrangements involving management services, administrative support, shared services, technical services, professional services, back-office support, cost allocations, and related-party service charges.
Our work supports companies, CPAs, tax advisors, attorneys, CFOs, and advisory teams that need documented support for inter-company service pricing and related-party charges.
Why The Valuation Group
Inter-company services pricing requires analysis of the services provided, the benefit received, the cost base, the markup applied, the parties involved, the functions performed, the risks assumed, and the economic support for the charge.
Our service-pricing analysis connects the charge to the business purpose, benefit received, cost pool, allocation method, markup, comparable data, and financial records supporting the arrangement.
We analyze related-party royalty arrangements involving patents, trademarks, trade secrets, technology, software, brands, proprietary processes, data assets, and other intangible assets.
Our work may address royalty rates, royalty bases, expected revenue, useful life, legal rights, commercial use, profit potential, market evidence, and the economic benefit received by the licensee.
Affiliated companies may license intellectual property across entities, jurisdictions, divisions, or ownership structures.
The Valuation Group reviews the licensing arrangement, the rights transferred, the business context, the entities involved, the expected financial benefit, and the support for the pricing method used.
Royalty analysis often requires careful review of both the rate and the base to which the rate is applied.
We evaluate the financial evidence, comparable license information where available, industry data, market conditions, licensing terms, risk, and the relationship between the intangible asset and the revenue or profit it supports.
Inter-company royalty matters may involve multiple jurisdictions, currencies, tax authorities, legal rights, regulatory environments, and documentation requirements.
The Valuation Group provides economic and valuation analysis designed to assist professional teams in documenting the commercial basis for cross-border intellectual property use.
