Software can be an extraordinarily valuable asset for many companies. It is a staple for nearly all types of businesses. In fact, it is embedded everywhere! It is in equipment like scanners, milling machines, lathes, sorters, medical equipment, and telephone systems. And that software generally has favorable tax treatment. However, many vendors do not itemize the software’s cost when they sell equipment. Consequently, many companies do not realize this savings opportunity because they cannot quantify the software cost. This issue costs companies millions each year. At P&A, we provide software valuations that can help companies realize this savings opportunity.

Software valuations often involve an understanding of the technical and business application for the software to properly determine and isolate the value. At Pellegrino and Associates, we have the proper foundation to defend our software valuation in strict accordance with federal appraisal standards because we authored and published the first paper on embedded software valuation and have helped to shape the tax laws that surround embedded software valuation. Michael Pellegrino, the President of Pellegrino and Associates, has worked as a professional software developer, created and sold software products, and currently maintains one of the largest known patent data warehouses.