A Company specialising in the development of haptics technology. The Company has developed two key haptic-related technologies and provides ad-hoc consultancy services related to haptic simulation and robotics. The Company has been in operation since 2007 provided consultancy services to key customers including several NHS trusts, numerous universities, and the UK Atomic Energy Authority.
We were engaged by the Company to provide a distressed IP valuation of each of its two key technologies, in order to estimate their likely value in an insolvency scenario and to assist the Company and its potential liquidators in assessing potential offers in relation to its IP Portfolio.
Recognizing that the Company had not fully commercialized its technology, and revenues to date had been generated from delivering consultancy services, we determined that the cost approach was appropriate in valuing the Company’s IP assets. Utilizing our Metisology® approach, we conducted an in-depth Information Discovery process in order to identify the key IP assets relevant to the valuation. This was crucial, in order to separate the IP underpinning the Company’s two key technologies. We identified that the Company owned software, patents and key organizational knowledge. However, this was a micro business and the development of these assets was not well-documented and so would not be easily transferable in an M&A scenario.
It was also necessary to determine the business model of the Company and gain a comprehensive understanding of how the Company’s key technology was to be deployed. This allowed us to assess the current state of IP development and identify the additional activities that would be necessary from a buyer's perspective to successfully develop and commercialize the assets. These factors were taken into account during our IP valuation opinion.
We delivered an IP Valuation of each of the Company’s two key technologies, reflecting the expected amount that may be reasonably expected to be realised from the sale of the assets in a highly-accelerated auction. We delivered our report to the Company, informing its strategic decision-making in advance of the Company entering into a formal insolvency process.
