Intellectual Property M&A Services
Most businesses think of merchant banks when mergers and acquisitions come to mind, and to sell a major business, acquire a major business, take a business public or take it private, merchant banks are capable of assisting with and managing such transactions.
But IP M&A – the sale or acquisition of a major patent portfolio – requires the services of an organization with BOTH financial know-how AND intellectual property (IP) expertise. IPOfferings offers the unique combination of negotiation, valuation, due diligence, finance and IP skills necessary to execute a successful transaction.
For example, due diligence in an IP M&A transaction is totally different from the due diligence performed in a business entity transaction. The portfolio must be evaluated for industry usage and licensing opportunities, potential market revenue must be assessed, the essential patents in the portfolio have to be identified, and key claims have to be matched against possible infringers.
Additionally, what encumbrances each patent has needs to be determined, and how those encumbrances can be worked into the transaction. Also, what impact will the licensees of any of the patents in the portfolio have on the overall transaction?
Valuing IP assets for a divesture, merger or acquisition is a totally different process from valuing a business or business unit’s value. There is no EBITDA in intellectual property. Valuation is computed in a totally different and unique manner, and there are numerous variables that both the seller and buyer need to be aware of. Each patent has to be evaluated to determine its impact on the total portfolio as part of the process of determining market value.
When selling, buying, taking public or taking private a business unit, are there intellectual assets – or, possibly, intellectual liabilities – that are not recorded and so do not show up on the balance sheet? Only a firm like IPOfferings with its specialized IP M&A expertise can ascertain what those intellectual assets or liabilities might be.
If your business is considering a major intellectual property divestiture, or a major IP acquisition, or a merger or IPO involving a business with significant intellectual property assets, it pays to have a cadre of intellectual professionals on your side of the transaction! It costs you nothing, and it puts you under no obligation, to have an initial, confidential discussion with the IP experts at IPOfferings. Contact our President, Rich Ehrlickman, at 845-558-8300 or firstname.lastname@example.org.