Valuing IP through M&A

To start the month of June, Corum was asked by the IP100 delegation to give a series of presentations in the UK, topic: “Valuing IP through M&A”. Sharing the platform with Olswang and Metis Partners, we were able to bring high-level experience from the perspectives of legal, transactional, and innovation. The audience was a strong blend of patent portfolio holders, IP buyers, and plenty of potential sellers.

 

Points of particular interest came through discussions around “how to leverage IP in an M&A event?” -- In today’s market, IP that has either been defended legally, or is a key revenue generating tool to a technology business are driving the highest valuations. In contrast, Non-utilized IP, or IP that has yet to go through legal testing is often more challenging to justify elevated valuations.

 

When selling IP or a portfolio of products, historically we have seen these sold as “IP assets”. However, more recently we have witnessed a series of vehicles become popularized by innovators and patent holders (and lawyers!), allowing them to bundle those assets into individual limited liability entities. Effectively, this allows the holder to sell the shares of the entity, thus benefiting on taxes through a lower capital gains rate, with less risk, and fewer liabilities.

 

Over the course of the past several years, the topic of IP has become increasingly important to the international technology community. As a result, Corum has been speaking at events across the globe (and the web), where we have been panel members in Asia, Europe and the US. For some of our most recent published data, please consult our IP Report, or keep an eye on our events calendar for upcoming presentations.


In the meantime, if you and your shareholders are trying to better understand the value you may be able to squeeze out of your IP-focused business… give us a call. 

 

Posted by , Chairman on 20 June 2016
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