Valuation of customer databases and customer relationships – discover the value of your customer portfolio
What does the valuation of a customer base involve?
The valuation of a customer base or customer relationships is the process of determining the economic value of intangible assets associated with a company’s customers – such as loyalty, cooperation history, long-term contracts or recurring revenue. Such assets have a real impact on enterprise value and are often recognised in the balance sheet, particularly following acquisitions or in-kind contributions.
When is a valuation of customer relationships needed?
Valuation of customer relationships may be required or recommended in situations such as:
- purchase price allocation (PPA) following an acquisition transaction,
- contribution of a customer base or relationships to another entity,
- preparation of financial statements in accordance with IFRS/IAS,
- sale of an organised part of an enterprise,
- assessment of the effectiveness of sales activities and customer-centric strategies,
- preparation for investment or due diligence,
internal assessment of customer value in B2B and B2C companies.
Who should commission a customer base valuation?
- companies with long-term, returning customers,
- companies with a subscription-based sales model (e.g. SaaS, e-commerce, services),
- companies acquiring other entities and reporting in accordance with IFRS 3,
- business owners planning to contribute intangible assets in kind,
- capital groups preparing to consolidate financial statements,
- technology startups building value on a loyal user base.
How does the customer relationship valuation process work?
The customer relationship valuation process includes:
- analysis of sales data, customer loyalty and revenue structure,
- identification of customer segments and the predictability of their purchases,
- assessment of retention and attrition rates,
- Selection and application of appropriate valuation methods, including:
- the income approach (DCF with a customer attrition model),
- the Multi-Period Excess Earnings Method (MPEEM),
- the comparative approach, where relevant market data is available,
- Preparation of a report aligned with accounting and tax requirements.
Why should you entrust us with the valuation of intangible assets?
We specialise in the professional valuation of intangible assets, supporting companies in financial reporting, transactions and consolidation processes. Our valuations combine financial, analytical and accounting expertise, ensuring that reports are reliable and acceptable to stakeholders.
- Many years of experience in intangible asset valuation – we carry out valuations of brands, trademarks, licences and other intangible assets
- A team of experts combining financial, analytical and accounting expertise – we ensure a comprehensive approach and consistency of work
- Knowledge of audit practices and consolidation requirements – our reports comply with auditors’ requirements and accounting regulations
- Clear and transparent valuation methodology – we apply proven approaches based on market data and recognised standards
- Reports accepted by auditors, investors and tax authorities – documents ready for use in transactions, financial reporting and audits
Thanks to our experience, intangible asset valuation becomes a tool supporting strategic business decisions, transactions and tax settlements.
Why is it worth valuing customer relationships?
- recognition of intangible assets on the company’s balance sheet,
- meeting audit requirements when implementing IFRS 3 or IAS 38,
- documentation for contribution-in-kind transactions or the sale of a business,
- the ability to demonstrate future economic benefits from retaining customers,
- a stronger negotiating position vis-à-vis investors, banks or partners.
Our experience
We have carried out valuations of customer bases and customer relationships for, amongst others:
- SaaS companies with a subscription model,
- e-commerce firms with a recurring customer base,
- B2B companies operating in the IT, education and services sectors,
- capital groups implementing IFRS 3 in acquisitions,
- companies preparing for a contribution in kind or the sale of their business.
The valuations included an analysis of retention, Customer Lifetime Value (CLV), churn rate, purchase cycles and the structure of recurring revenue.
FAQ
How do you value a customer base?
The value of customer relationships is the projected net benefit, i.e. revenue minus the costs of acquiring and retaining customers. Income-based methods (e.g. DCF, MPEEM) are most commonly used.
Can any customer base be valued?
No. Valuation is possible if relationships are stable, data is complete, and revenue is predictable.
On what basis is the value of customer relationships determined?
It is determined based on customer loyalty, cooperation history, retention and the value of generated profits.
Can customer relationships be recognised as an asset on the balance sheet?
Yes – provided they meet the recognition criteria in accordance with IFRS or the Accounting Act.
Can a customer base be contributed in kind?
Yes – provided that it constitutes a separate asset and is properly documented and valued.
How long does it take to prepare a valuation?
Usually between 1 and 3 weeks, depending on the complexity and quality of the data.
Do you need a customer relationship valuation?
Contact us – we will carry out a reliable valuation of your customer base or commercial relationships. You will receive a professional report ready for use in transactions, contributions in kind, balance sheet recognition or audits. We work quickly, accurately and in full confidentiality.