IP is the ‘X-Factor’ in M&A

Examining the key disciplines that need to be employed when assessing the IP assets of a target company

Valuing companies for mergers & acquisitions purposes generally follows a traditional route, looking at multiples of earnings, net present value, cash flow and the like. But there is another factor that can determine whether the target company is a ‘star’, a ‘wannabe’ or something of a ‘has been’ — that’s its intellectual property (IP).

Yet despite the increasing awareness in the business community of the value of IP, for many companies, IP due diligence in M&A remains largely a back office, risk-centered exercise based on a rudimentary assessment of a target’s intellectual assets, often conducted at the eleventh hour.

Contributing Author

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Haydn Evans

Haydn Evans is vice president of intellectual property solutions at CPA Global, one of the world’s leading providers of IP management software and services....

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