Membership fees are determined on a cost plus mark-up basis to ensure that the direct costs and expected administration costs for each membership type for the year are covered. Costs are covered by the membership fee’s and the expected administration commission charged on projects delivered under the EIC brand and legal umbrella.
The consortium is currently valued on a Discounted Cashflow (DCF) basis of projected profits from membership fee’s and administration commissions. The detailed assumptions and calculation of this model is openly available to Affiliate, Primary and Equity Members of the consortium. The DCF valuation model was chosen as standard industry practice despite expectations that it is not a good fit for the EIC business model given that the value of the consortium is mostly contained in the good will that its members hold with potential clients and the impact that our knowledge, skills and perseverance can have on society. Therefore valuation model and assumptions therein are susceptible to change and will be reviewed on an annual basis by the EIC Board.