Intellectual property valuation
IP valuation is the process of determining the worth of a range of intangible assets.
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 IP, 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.
Our IP commercialisation consultants can advise on the valuation of IP to support a range of activities, such as company fundraises, establishing fair value deal terms to licensors and licensees, when licensing, transferring or selling intellectual assets.
The importance of IP valuation in shaping corporate strategy
Understanding the financial and strategic value of IP 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.
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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.
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Tax and accounting compliance
Financial reporting, taxation, and depreciation calculations for business assets are all impacted by IP valuation. -
Mergers and acquisitions
IP valuation is essential when negotiating the sale or merger of a business to ensure fair deal terms.
Sector differences in IP valuation
IP 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.
IP services
- IP assessment - We demystify formal and informal intellectual property rights to assess their significance and value.
- IP disputes - When an issue arises in this technical area, it's crucial to obtain specalist advice at an early stage.
- Patent attorney services - We help protect new developments, putting innovators in a stronger commercial position.
- Patent box - We help clients navigate this scheme with encourages companies to undertake R&D and protect the resulting IP via a UK patent.
- Tax-efficient R&D - We make applying for this tax incentive for innovate companies as simple as possible.
- Trade marks - Making your ideas, technology, innovations and designs work for you - it's vital they are protected.