The Importance of IP in M&A transactions
For the past 10 years, Coller IP has been at the forefront of developments in Intangible Asset Management. Jackie Maguire profiles the firm and explains their place in the market.
With intangible assets representing 80% of the value of a typical business, they are an important asset class to consider in any M&A activity.
First of all there are assets that provide a route to market – such as branding, positioning, relationships, reputation and contracts.
Secondly, those that are people based; the processes and procedures that people have developed, the ideas that they have and the know-how that the business now owns.
And finally those that actually provide a business with its legal underpinning, called intellectual property (IP), including such assets as patents, trademarks, designs, copyright, trade secrets, databases, software and others that are created from innovation and creativity within the organisation.
At Coller IP we believe that for a business to be sustainable, it is important to have assets in each of the above three categories, that is Intellectual Property, to provide legal underpinning, the people based assets, and the wider intellectual capital that provides a route to market.
When we are carrying out due diligence as to the legitimacy of ownership, the robustness of the IP assets and potential gaps in the intangible asset portfolio, or providing valuations for M&A, is it all of the above that we take into account.
The business and intellectual property markets are currently undergoing some major changes, and this is having some knock-on consequences on IP value propositions both in Europe and the USA. However the banking sector is increasingly becoming involved in discussions regarding lending against IP assets and the importance of IP in underpinning business continuity and value remains an important factor in the deals surrounding M&A activity. In addition, as the value of the intangible assets will be transferred to the balance sheet of the acquirer on completion of the deal as well as informing negotiations during the deal, a robust and independent valuation is essential.
Coller IP has a unique team of IP specialists that can assess the IP and wider intangible assets from a Technical, Legal and Commercial perspective: our TLC for IP® services ensure that the strategic fit of the IP assets of both parties is understood during an acquisition or merger and that opportunities and threats can be managed and organised to best advantage within the context of any subsequent integration as well as its power to beat the other competitors.
Coller IP not only provides due diligence and valuation services on behalf of clients, but also works directly on the ground with organisations to prepare them for M&A events and to support subsequent management, including on-site training and restructuring assistance to implement IP Management Best Practice.
Company: Coller IP
Name: Jackie Maguire
Web Address: www.collerip.com
Address: Oxfordshire and London
Telephone: 01491 820 611