Study on Weston Model of Valuation of Intellectual Property Right during Merger and Acquisitions of Enterprises

In order to adapt to the cut-throat competition, Mergers and Acquisitions (M&A), Reorganization, Equity Trade, etc between enterprises are unprecedented active. In knowledge economy, M&A always involves value assessment of intellectual property right, so the choice of valuation is key in determining the proper trade price during an M&A. Based on the Weston Valuation Method which is widely used in M&A, this paper revises its profit parameter from "cliff" to "slope", puts it into an M&A case, compares it with original method, and at last comes to the following result: the revised Weston Valuation Method is more closed to the reality and more applicative in valuation of intellectual property right.