I have a complete CRM for a high growing industry and having 2 customers, one of them being a huge company. I also come with a background of almost 15 years in IT and a hard core ERP/CRM/Enterprise Solutions Guy and with an uncannny knack of designing products of any domain/any size/any time. The product was developed while I was working with few of my friends and the IP belongs to me completely.
I have been on my own for almost a year and half now during which time the product has been improved/refined a lot. I have not gone seriously/aggressively to market my product due to several constraints though the product is highly marketable and also proven.
Recently I have been approached by few companies to take over my product and also join their board to head their Enterprise Solutions Division.
I have the following situation:
I need to value the Product and Sell the IP to the Company.
The Buying Company will MArket/Sell the product in Indian /International Market. They will also try to integrate this with a reputed ERP to make it more acceptable in the International Market.
What are the different methods to arrive at a fair valuations so that it becomes a Win-Win Situtation for both parties. The Product Pricing for Indian Market typically is around Rs.3 Lacs Per Installaton. The Total Market Size for The product is very huge.The Revenue Expected (estimated) for the first 3 years is around 5 Crores.