COMMERCIAL IP DUE DILIGENCE

 

Why instruct a Commercial IP Due Diligence exercise?

In any major business transaction, failure to secure and protect critical intellectual property (or “IP”) assets carries significant financial and operational risks, particularly where IP underpins a business’ key revenue streams. It is therefore essential to understand how valuable, robust, and well-protected these critical IP assets are.

We mitigate risk for lenders, investors and acquirers by taking a commercial view on IP and by:

  • identifying the most valuable IP assets which underpin the target business’ revenue streams and/or forecasts;
  • confirming the IP assets are properly owned and controlled by the business;
  • considering potentially valuable, easy-to-overlook IP which can be used as security;
  • highlighting often hidden weaknesses in IP portfolios which can significantly diminish their value;
  • ensuring the quality of the IP assets can stand up to third party scrutiny; and
  • recognising the financial and commercial value of critical IP assets.

How can a Commercial IP Due Diligence Exercise help?

Metis Partners’ Commercial IP Due Diligence identifies and assesses the quality of IP assets owned or relied upon by a business, which is often useful both to prospective buyers and investors, as well as banks which lend against IP assets.

Our Commercial IP Due Diligence report provides clients with a thorough narrative of critical IP assets vesting in a target business, their benefits, as well as any associated risks. We provide recommendations on the measures that clients can undertake to address and mitigate any identified risks.

Who needs a Commercial IP Due Diligence exercise?

Commercial IP Due Diligence exercises are relevant and essential to:

  • Debt finance providers and banks, which lend against IP assets;
  • Venture capitalists, looking to understand and mitigate risks prior to an investment; and
  • Private equity firms, looking to evaluate the quality of IP assets and valuing a target company.

Our clients

Metis Partners has conducted Commercial IP Due Diligence exercises and advised on lending, buy-out and investment transactions valued from $3 million to $3 billion in Europe, the US, and Asia. Our clients range from banks to multinational investment firms, including the Clydesdale Bank, Energy Ventures, Boost&Co, the Malaysian Government Multimedia Corporation (MMC), and Bain Capital Private Equity.

Further information

If you would like to know more about our Commercial IP Due Diligence offering, please contact Ruby Chan on 0141 353 3011 or ruby@metispartners.com.