Transferable and flexible – IP asset class shows its worth by facilitating a super-fast corporate turnaround
A successful restructuring of an IP-rich insurtech provider has once again proven that IP assets play a critical role in corporate transactions. BM Advisory quickly appointed Metis Partners to conduct a marketing campaign on recognising that their client was rich in IP, primarily disruptive technology. Metis Partners reached thousands of individuals and corporates from its extensive M&A database of IP buyers.
The accelerated pace of the sale, whilst being anonymous, ensured that a buyer was secured while the company continued to trade. The insurance service provided by the company was therefore uninterrupted and the company avoided a financial distress scenario; preserving asset value, jobs and continuity of insurance cover for customers.
The IP-savvy purchaser recognised the unique value that had been created in the sellers’ digital platform. With continuity of service being guaranteed, the deal secured substantial investment for expansion and growth from the investor, particularly in new and appealing digital channels that insurtech provider had developed.
Aylin Dzhafer, Senior Manager at Metis Partners, said: “This share sale is a clear indication that our vast M&A database of IP buyers and investors will consider going concern businesses as well as those assets being sold from financial distress. Our database includes local and international buyers and investors that already appreciate the value in IP-rich businesses and how IP can give immediate access to cashflows and sustainable revenue streams.”
“There is no doubt that our ability to assess the quality of the IP assets and effectively market them to so many parties in such a tight timeframe was the key to the success in this company sale. I am sure that is why BM Advisory continue to trust us with their clients – we delivered to an incredibly tight deadline and in this case, ensured the company was able to continue trading.
Andy Pear from BM Advisory added: “We once again relied on Metis Partners to assist us. They have both the capability and resource to deliver to our accelerated timescales and the ultimate buyer of this IP-rich technology business came from their extensive IP buyers database who recognised the plug’n’play attraction of the acquisition and were able to act quickly and make a great acquisition.”
Stephen Robertson, Founder of Metis Partners, added: “Our recent engagements clearly demonstrate that advisors are seeing the benefits of securing our unique IP assessment as early as possible – it gives them so many more options for financing, restructuring and leveraging critical IP assets. This is another case where both the company and jobs were saved.
The sale was hotly contested, with 13 expressions of interest from the UK, US, and Europe, leading to three offers. The eventual purchaser offers complimentary services and is expected, by industry experts, to add significant post-sale value.