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IBBI Registered Valuer
SEBI Category-I Merchant Banker
Chartered Accountants

Which valuation methods are commonly used for customer relationship and customer contract valuation?

Customer relationships are typically valued using the Multi-Period Excess Earnings Method (MPEEM), which estimates the future economic benefits expected from existing customer relationships after deducting returns attributable to other contributory assets. The valuation considers factors such as customer retention, projected revenues, profitability, attrition rates, and the expected economic life of the customer base.