The application of the distributor method in valuing customer relationships has become a mainstream methodology in the valuation professional’s toolkit. However, as we consider how other types of customer-related intangibles are valued the method has now evolved into a foundational analytical tool to assist in determining cash flow, discount rates, and value. Mr. PJ Patel, CFA, ASA, will discuss how the distributor method has matured from a best practice to a prevailing application, and will present case studies that illustrate how the method can be used in non-CPG industries.

Mr. Patel is co-CEO and senior managing director of Valuation Research Corporation (VRC); he leads VRC’s financial reporting practice and specializes in the valuation of business enterprises and their underlying intangible assets, including brands, trademarks, patents, customer contracts and relationships, software and IPR&D.