The Client

Our Client is a UK-based software business with revenues of £7m, which has developed an end-to-end software solution for the insurance industry, capable of handling the entire insurance business cycle. The Company has a 20-year track record in the insurance software industry, servicing both SMEs and multinational organizations.

The Assignment

The Company has invested significantly in its software products and we recognized this as a key asset underpinning revenue. The Company is expanding its operations to North America and recognized the need to protect the IP from the risks associated with trading entities that will operate in different insurance markets. We were engaged to provide an IP Valuation to enable the Company to change its corporate structure and facilitate the IP to be utilized across territories and service different insurance markets.

Our Approach

Using our Metisology® approach, we identified key IP assets within the Company, confirming ownership and mapping to material revenue streams, both historic and forecast. Through our IP Discovery process, we found that while the software was highly sophisticated, its bespoke and customizable nature required significant time and effort to install and maintain, and whilst this increased the customer acquisition cost, those customers were far less likely to subsequently ‘unplug’. We also discovered that, in an industry where data, security and integration are priorities, the Company’s 20-year brand and reputation as a trusted software supplier to the insurance industry, was critical in securing tendering contracts, driving high customer retention rates and increasing the valuation of the IP.

The Outcome

We delivered an IP valuation of the Company’s key software and brand-related assets, which the Company used to inform internal decision making around its planned IP asset transfer. Management achieved transparency over the IP that is both critical and valuable, and can develop a strategy to protect the IP and future cash flows, during its planned expansion into North America.

IP Assets Valued: Software & Brand.