IP is pivotal to the value of many businesses. Yet the commercial strength and value of technology, brands and innovation is often poorly articulated in information memorandums. Or misjudged by buyers. If the bulk of the value of a corporate transaction is driven by technology and brands, it makes sense to ‘kick the tyres’ of these assets. Parties to a transaction should identify IP assets, quantify their strength, gauge the associated risks, and understand the value implications. This helps sellers maximise the sales price or capital raising. An  IP due diligence helps buyers to pick the winners.

Patents and trade marks are increasingly sold and licensed as standalone assets. In addition to gaining access to the appropriate market participants, these transactions also benefit from a quantitative assessment of the functional, legal and economic characteristics of the IP assets.