The intellectual property (IP) position of a company should be important to financial investors, including private equity (PE) sponsors, because the IP position of a company factors into a wide variety of transactions, including acquisitions, divestitures, mergers, strategic investments, recapitalizations and opportunistic financings.
The Intellectual Property (IP) Assets of a company provides a direct measure of the company's IP position in the marketplace. The IP Assets of a company may impact the legal rights of competitors to make, distribute, market, sell and use products and services provided by the company in the marketplace, and thus may produce advantage against competitors. At the same time, the IP Assets of a company's competitors may impact the company's legal rights to make, distribute, market, sell and use their products and services in the marketplace, and thus may impact a company's capacity to generate revenue and earn profits.
The value of these IP Assets and associated IP Rights typically contributes to the value of the capital invested in the company. Often, this impacts the amount of leverage such IP Assets might support in any financial transaction involving those IP Assets.
Financial managers need to advise team members and conduct activities that involve (i) identifying opportunities with a particular company, (ii) unlocking hidden value in its IP Portfolio, and (iii) supporting its financial investments.
Contact us today to learn more about the IP due diligence process, and how we can help you support the value of financial investment using IP due diligence assessment.
