What is a RoyaltyRange Benchmarking Study?
Our Benchmarking Studies provide you with a detailed comparison of publicly available royalty rates, service fees and interest rates that helps you determine an arm’s length (market) remuneration range for your specific products, services and transaction types. You will be able to use this data to set reasonable rates and fees, prepare transfer pricing documentation and Patent Box applications, negotiate license agreements, value intellectual property, consult, and more.
How does it work?
We prepare your Benchmarking Study by carrying out the following steps:
- Quantitative screening: We will perform an initial search to prepare a list of potentially comparable reports.
- Qualitative screening: We will manually review the sample and select a final set of reports.
- Financial analysis: We will calculate the range of rates or fees for third-party agreements, including interquartile and median arm’s length rates.
All our agreements are manually analyzed. The final set of reports consists only of those agreements that have the most comparable terms. We use these agreements to conduct a Comparable Uncontrolled Price (CUP) analysis to calculate a rate or fee range that complies with the arm’s length principle.
Our Benchmarking service clients
What is included in the Benchmarking Studies?
Your RoyaltyRange Benchmarking Study will contain:
- A write-up of the entire search process, including the search strategy applied, a description of the quantitative and qualitative screening taken, the final list of comparable agreements and a calculation of a market rate or fee range based on the comparable agreements.
- An appendix with a list of the primary rate or fee reports that we selected during the quantitative screening stage, as well as rejection criteria for any agreements that were rejected.
- An appendix with a list of the rate or fee reports that were selected during the qualitative screening stage.
- PDF versions of the original sources for the final set of comparable agreements.
We will prepare your Benchmarking Study typically within five working days of your request. Your Benchmarking Study reports will include additional information on practices within your industry – such as the basis of rate calculations; prepayment terms; terms of exclusivity; distribution of performed functions, risks assumed and assets used by the parties in the transaction; rights to enhancements, revisions and updates; and extent and duration of legal protection.
There are many benefits to investing in RoyaltyRange’s Benchmarking Studies service, including:
- Access to up-to-date data: Our proprietary databases are constantly updated with new transactions and consist of agreements that are typically concluded between unrelated parties. This ensures that the data in our databases reflects recent market practices.
- Ease of use: Our professionals perform the search and create the study for you, so that you do not have to go through hundreds of agreements in order to find what is relevant to you.
- Speed of service: We finalize the whole process within several working days or before your specified deadline.
Fees and ways to pay
If you have any questions about prices for Benchmarking Studies, or would like us to help you create an optimal search strategy for your organization, please contact us at RoyaltyRange today.
RoyaltyRange supplies private company financials and ownership, royalty rates, loan interest rates and service fees data to industry-leading multinational enterprises, global consulting companies, international law firms, tax authorities and universities in more than 70 countries. RoyaltyRange is funded by the European Union’s Structural Funds, with a total share capital of USD 1,000,000.