Detailed MEEM example: customer revenue 100, attrition 15% p.a., EBITDA margin 25%, tax 30%, CAC 5% of revenue, discount rate 10%, 10-year forecast. How do you model customer relationships?

Start with customer-relationship revenue and reduce it each year by 15% attrition. Apply the 25% EBITDA margin, subtract contributory asset charges of 5% of revenue, tax-effect the excess earnings at 30%, and discount each year's after-tax excess earnings at 10%. Sum the present values over the 10-year forecast. That present value is the customer-relationship intangible value before any final appraiser refinements.