Intellectual property valuation is the process of determining the worth of a range of intangible assets including patents, trade marks, designs, confidential know-how, trade secrets, and copyright.
The value of these intangible assets lies in their ability to generate future economic benefits. Intangible assets, such as intellectual property, are becoming increasingly important for businesses to build competitive advantage and drive growth, and so therefore is the need for reliable, robust and defendable IP valuation.
What do we do?
With over 40 years of combined experience in supporting the needs of IP-based businesses and research organisations, our experts advise on the valuation of IP to support a range of activities, from valuations for balance sheets, company fundraises, to establishing deal terms in transactions that involve intellectual assets. We use industry-leading methodologies, and by working closely with you, provide meaningful insights into the key risks and factors that will have the greatest impacts on the value of your IP. Find out more about our IP commercialisation services here.
The importance of IP valuation in shaping corporate strategy
Understanding the financial and strategic value of intellectual property allows businesses to maximise their assets and protect their competitive advantage throughout the corporate lifecycle.
Investment and funding: Investors and lenders often assess the value of a company’s intellectual property when determining financial backing or creditworthiness.
Licensing and revenue generation: IP valuation is used to set appropriate terms for licensing agreements, royalty rates and other revenue models.
Strategic planning: IP valuations can help businesses make informed decisions about R&D investments, expansion opportunities and competitive positioning.
Legal protection and risk management: Knowing the value of IP can be beneficial in the management of legal disputes, enforcement actions, and when assessing infringement risks.
Tax and accounting compliance: Financial reporting, taxation, and depreciation calculations for business assets are all impacted by IP valuation.
Mergers and acquisitions: Intellectual property valuation is essential when negotiating the sale or merger of a business to ensure fair deal terms.
Who do we help?
We offer IP valuation services to organisations of all sizes, including universities, charities, SMEs and multinationals. We have extensive experience in green chemistry and fintech industries, as well as within the pharmaceutical, biotechnology and life sciences sectors.
Driven, dedicated and knowledgeable in the whole spectrum of work covering commercialisation of technology.
Sector differences in intellectual property valuation
Pharmaceuticals & biotech
IP valuation influenced by regulatory approvals, exclusivity periods, and potential revenue from drug commercialisation.
Technology & software
IP valuation often affected by next best alternative and work-around options. Product life cycles often shorter.
Manufacturing & engineering
Often important to consider a complete IP package such as designs, trademarks and know-how as well as other registered IP.
Entertainment & media
Brand licensing is a high-growth sector and accounts for nearly one third of global licensing revenues.
Retail & consumer goods
Often feature brands and extensions of rights from entertainment, celebrity endorsements, etc. Often feature design rights and the product could be packaged with other IP and tech.
Intellectual property valuation work highlights
Advised a global company on an IP valuation and deal terms for IP valued at >$400m in the context of a $2bn business case, so that the client could support their negotiation strategy with an independent and robust valuation of their technology.
Valued a licence income stream for a corporate client on an advanced therapy already under licence. Using validated and defendable assumptions and a deep understanding of the interaction between the addressable market and licence terms we were able to model future licence income in a number of scenarios (NPV>$200m).
Advised on valuation and deal terms for a company owning IP in surgical technology. We estimated the value of the technology from the perspective of different stakeholders and advise on the structure and acceptable deal terms for parties requiring a freedom to operate licence for the technology, giving the basis for the client to approach third parties with confidence.
Advised on valuation and deal terms for a company owning IP in vaccine technology. We estimated the value of the technology (rNPV >$200m) in a number of scenarios and advised on the structure and acceptable deal terms for parties requiring a freedom to operate licence for the technology, whilst also advising on shortlisting companies most likely to engage in licensing discussions.