Client

Private Equity Banker (“Client”) of a Waste Management Company (“Company”)

Background

The Company designed, manufactured and provided innovative waste management technology, originally for the oil and gas industry. The Company identified an additional market opportunity and refocussed its activities on greywater recycling and treatment technologies, as well as waste-to-energy technologies designed to generate re-usable or sellable by-products. The Company’s state-of-the-art products were protected by an extensive portfolio of intellectual property (“IP”) assets, including numerous patents.

Assignment

Metis Partners was asked to provide an Intellectual Property Valuation Opinion™ and advise the Client in relation to IP asset value recovery in the likely worst-case scenario of a distressed financial situation. The advice was required in order to inform our Client’s decision-making process and consideration of the potential future actions regarding the Company and its IP, including an asset disposal and future financing options.

Our Approach

Metis Partners carried out a thorough Information Discovery Exercise on the IP assets linked to the Company. We identified the IP assets, their context and potential value through comprehensive desktop research and IP discovery calls with key representatives of the Company.

We catalogued an extensive IP portfolio, comprising in excess of 100 patents and patent applications, several registered trade marks protecting the various aspects of the Company’s technology, as well as other IP assets including the Company brand, branded website & domain names. In addition, we identified software that was incorporated in the Company’s products, trade secrets pertaining to the details of the technology and organisational knowledge in the form of laboratory reports, instruction manuals, process overviews, technical specifications and test data. A key aspect of the information-gathering and assessment was determining, with the assistance of the Company, the critical and currently live projects and the IP relevant to these, as well as the non-core or paused business streams.

Metis Partners performed analysis on the IP assets and their associated financial information, using financial modelling and specialist royalty databases. We carried out detailed scoring exercises to assess the commercial potential of the IP assets by considering their protection, management and leverage within the business, as well as the market as a whole. The results were compared to the data in our proprietary IP benchmark database. This process, which is designed around our unique experience in the valuation and sale of IP assets from distressed scenarios, gave us an unrivalled ability to form a robust and realistic valuation of these highly specialist IP assets in different contexts, including a worst-case scenario.

Results

  • Provided IP valuation advice for a business operating in a highly specialist market;

  • Determined and highlighted IP asset value in a vast portfolio of assets across a large number of IP asset classes;

  • Produced a detailed IP report relied on by the Client to make strategic decisions in their role as an investor

  • Advised on steps required to preserve and maximise value in light of the strategic alternatives which were being considered, including provision of further funding, disposal of business or restructure