A Private Equity (PE) Lender was providing investment to a Waste Management company that designed, manufactured and supplied innovative waste management technology to the oil and gas industry. The Company's products were protected by an extensive portfolio of IP assets.
We were engaged by the PE firm to advise on a potential ‘downside’ valuation to support its investment decision. The PE firm wanted an assessment of the likely recovery value from an IP asset sale, should the worse-case scenario result in financial distress. We also advised on the potential buyers of the IP, should an accelerated M&A or IP asset sale be required to recover value.
Our Metisology® approach identified an extensive IP portfolio, including more than 100 patents and patent applications, registered trademarks and established brand, software that was incorporated in the Company's products, and trade secrets. We also identified extensive organizational knowledge in the form of laboratory reports, instruction manuals, process overviews, technical specifications and test data, which contributed significantly to IP value and was well-protected and capable of being transferred.
A key aspect of the information-gathering and assessment was ring-fencing the critical and live projects and the IP relevant to these, as well as the non-core IP from paused business streams.
We provided IP valuation advice for a business operating in a highly specialist market and that owned a vast portfolio of assets across a large number of IP asset classes.
Our report outlined the key strengths and potential IP risks, and delivered a downside IP valuation which was relied on by the investor.
We advised on steps required to preserve and maximize IP value in light of the strategic alternatives which were being considered, including provision of further funding, disposal of business and restructure.
Critical IP Assets Valued – Patent Portfolio, Brand-related IP, Software, Trade Secrets, Key Organizational Knowledge.
