The Client

The Client is a US-based designer, manufacturer and distributor of fire-rated architectural and engineered, duct and electrical enclosure solutions to contractors, engineers and architects. With circa $20m revenues, the Company utilizes its IP-backed technology to manufacture and sell products to the HVAC market.

The Assignment

Our Client had secured an exclusive, perpetual and irrevocable license for the use of a number of IP assets for the manufacture and sale of its products throughout the US and Canada. While the license agreement included trademarks, patent applications and organizational knowledge, our Client recognized that its extensive library of licensed-in organizational knowledge relating to fire safety product testing, was a key driver for securing its competitive advantage. This IP asset allowed the Company to demonstrate a superior level of code compliance in a highly regulated sector, providing it with a sustainable competitive advantage over competitors who required extensive time and expenses to achieve this. The Client required the IP Valuation of its IP assets, including the license, to better understand the value of these assets and support a strategy to raise non-dilutive funding.

Our Approach

We valued the IP assets on a fair value basis. Using our Metisology® approach, we performed a comprehensive Information Discovery exercise, assessing the Company’s IP Portfolio to identify the ownership of IP assets and map these to the Company’s key products to determine their contribution to the Company’s competitive advantage. Performing effective diligence on the Company’s mix of IP assets was essential, in order to establish the Company’s right to commercially leverage its licensed-in IP. Through our Information Discovery exercise, we identified that the Company’s key IP assets were licensed-in organizational knowledge, as well as its proprietary and complex sales pipeline building quote system, which had delivered reliable sales conversion rate visibility over recent trading periods. Crucially we linked these IP assets to current and future cashflows, underpinning the Company’s competitive advantage and key revenue streams, in order to identify the key drivers of IP value.


The Outcome

We delivered a robust Desktop IP Valuation of the Company’s IP Portfolio, providing commentary around the IP assets that vest within the Company and underpin its key revenue streams. This valuation helped them secure new non-dilutive funding by linking cashflows to IP assets and furthermore gave their PE backers confidence in their investment in this portfolio Company.

IP Assets Valued: Organizational Knowledge, Database, Patents and Brand