due-diligence

COMMERCIAL IP DUE DILIGENCE

Metis Partners’ IP due diligence service aims to bridge the gap between financial and legal due diligence. If you are considering investing in a company or making an acquisition, you need to identify and understand the critical IP assets in the target business, how well protected they are and if there are any risks which need to be addressed.

We can help you quickly “get to grips” with a target company’s reliance on IP assets in order to recognise if those IP assets are well-secured as critical assets of the business. Next we will assess whether they offer the target business a robust and scalable competitive advantage/freedom to operate.

We then make that crucial link between the quality of IP assets and their ability to achieve the business and financial assumptions underpinning the target company’s forecast revenues. We do this through our sharp insight and experience in assessing the likely financial impact of the IP risks and weaknesses we identified.

Our comprehensive internal review provides in-depth insight and analysis of:

  • Key patents and their legal status
  • The depth of IP assets and the extent to which they support or underpin key revenue-generating products and services
  • Reliance on individual know-how and trade secrets, and the risks of IP leakage post-acquisition
  • How dependent customer strategy/products are on IP assets
  • Whether the company has a strategy for growth built on sustainable competitive barriers to entry/freedom to operate

We often undertake external analysis including interviews with key customers and suppliers, which extends the scope of primary research beyond the company’s management team. Supported by secondary research on critical markets, sector dynamics and key competitors, our due diligence process provides the benefit of a full analysis of the company’s critical IP assets and how they underpin business operations.

If required, we can also carry out patent landscape analysis, provide an assessment of the company and its key IP assets, within its defined markets, benchmarked against competitors and other companies where necessary.

The final detailed commercial IP due diligence report highlights the key business IP issues that investors or corporate acquirors need to understand and address, in order to protect current and increase future value. Crucially, our report can also help to inform the valuation process and negotiation of a reduction in the price of the acquisition for an acquiror.

Previously, Metis Partners has partnered with a range of specialist providers, including IP lawyers, patent agents and technical diligence experts, to ensure that clients get the best value from the IP diligence exercise.