In the context of a tax ruling, Swiss Economics was commissioned to value a software asset being transferred within a corporate group. The engagement involved assessing the asset's economic value through a detailed review of historical and projected financial performance, the determination of sustainable earnings, and the application of a discounted cash flow (DCF) valuation using a risk-appropriate discount rate. The results were documented in an independent valuation report prepared for tax purposes.

Methods

• Collection, review, and validation of the financial and operational information relevant to the software asset.
• Plausibility assessment of historical financial performance.
• Determination of sustainable earnings in accordance with the SECO SME Guidelines, taking account of the asset's historical performance and expected long-term earnings potential.
• Estimation of a risk-appropriate discount rate reflecting the characteristics of the software asset and its expected future cash flows.
• Valuation of the software asset using the discounted cash flow (DCF) method based on the sustainable financial performance and estimated discount rate.
• Preparation of an independent valuation report documenting the methodology, assumptions, and valuation conclusions for use in the tax ruling process.