1. Asset Valuation
Why It’s Worth It!

2. What We’re Going to Talk About…
How we valued our assets previously
The need for a professional valuation
Overview of the process
Results
Benefits we’ve seen

3. The olden Days Loose partnership levels: $10k, $25k, or $50k
Sometimes even less, like $3,500 – $5k
À la carte rate card allowed for subjective haggling of assets with potential partners
Combination of:
2007 valuation
Industry standards
Our CEOs personal opinion of what we were worth
- A la carte rate card: messy contracts, with no rhyme or reason.
- Industry standards didn’t account for USC, very different from, say, Nebraska

4. So What’s the Problem? Undervaluing our assets
Impacting our bottom line
Doesn’t account for intangibles
Too much wiggle room in partner negotiations
Same amount of staff resources, whether $5k-50k. Often lower partners were more needy/high maintenance

5. The Valuation Process IEG: the gold standard
Six month process (typically three - six months)
Assess all tangible and intangible assets
Analyze everything from your alumni profile and web traffic (normal), to signage inventory and hospitality buys (huh?)
Three revised drafts
Cost: $28,000
4. APPLY PRICE ADJUSTERS
1. VALUE TANGIBLE BENEFITS
2. RANK INTANGIBLE ASSETS
3. FACTOR REACH, COST BENEFIT RATIO
5. BENCHMARK DATABASE
6. ISSUE IEG VALUATION STATEMENT
Tangible assets: web, , event presence, etc.
Intangibles:
Prestige of Property
Category Exclusivity
Level of Audience Interest/Loyalty
Ability to Activate (key proprietary programs, promotional timeframe, can’t-buy experiences, etc.)
Limited Degree of Sponsor Clutter (limitation of premium rights and benefits, advertising clutter, etc.)
Formula: face value of tangible & intangible benefits, divide by cost/benefit ratio, add to subtotal the non-sponsor benefits available, = total fair market value

6. What Did We Learn?
Our fair market value was much higher than we thought
We did not factor in the value of intangible assets (43%)
Allowing à la carte options shortchanged us
New partnership levels: $21k, $51k, $92k
Intangible value: USCAA reach and recognition. Very high scoring (9/10) in prestige of property, awareness of property, level of audience loyalty, ability to activate, networking opportunities, established track record

7. Mo’ Money, Less Problems
Long-Term Benefits:
Mo’ Money, Less Problems
Partnership pricing was no longer subjective – we could justify what we were asking!
Removed buyer risk for potential partners
Locked in partners for longer contracts at a grandfathered rate
Revenue jumped 49.42% in two years

8. Associate Director, Marketing
Christina Gustafson
Associate Director, Marketing
(213)