The Client

A UK-based cyber security company with revenues in excess of £7m, which provides cyber security software and related services to a range of clients. The Company had just completed a business transformation, investing significantly in a threat detection and response software platform, with the aim to transition from value-add reseller to a SaaS-based business.

The Assignment

We were asked to conduct three valuations in respect of the critical IP assets that underpin the distinct areas of its business – SaaS business, technology reselling division, and the full IP portfolio of the Company. These valuations provided the Company with the support, and more importantly the IP narrative to enable them to effectively communicate with potential funders and consider a potential sale of one of the divisions.

Our Approach

Using our Metisology® approach, we performed an extensive analysis of the Company’s IP portfolio, mapping each IP asset to the separate areas of the business. This was complex as we discovered that a number of the IP assets were underpinning multiple revenue streams. Software, 20-year brand & reputation, and extensive organizational knowledge were identified as being critical IP assets of this business.

Our research and analysis extended from the cyber security industry to include the managed security services and IT infrastructure services markets, in order to identify the key drivers of industry growth and determine key assumptions about the financial forecasts and valuation inputs.

The Outcome

We delivered three IP valuations, providing detailed commentary around the IP assets underpinning each revenue stream, and the value of each. This allowed our Client to assess the financial significance of each of its ‘IP bundles’ and supported decision making regarding the potential sale and/or restructure of its business. Additionally, our detailed report enables the Company to better communicate the potential of the IP to prospective investors, enhancing investor confidence.

IP Assets Valued: Software, Brand and Organizational Knowledge