An early-stage technology company that has developed an innovative, patent-backed autonomous ground-printing technology and end-to-end inventory management software for use in sports, entertainment and events advertising. Following circa ten years of research & development, the Company had recently commercialized the technology through its partnership with a world-renowned professional sport club. The Company had therefore generated minimal revenue as at the date of valuation.
The Client, an investor, required a Full IP Valuation of the Company’s IP assets on a fair value, orderly-liquidation value (“OLV”), and forced liquidation value (“FLV”) basis, in order to support internal decision-making in relation to its future funding plans.
Utilizing our Metisology® approach, we performed a comprehensive review of the Company’s IP portfolio, assessing the extent to which each IP asset contributes to its competitive advantage and revenue generation. The Company had developed an extensive portfolio of IP assets, including software, patents, key organizational knowledge, trade secrets, critical databases, and brand-related assets. Our IP diligence determined that the Company’s proprietary software was the key and most valuable IP asset in the portfolio.
We also conducted an in-depth assessment of the Company’s product development and stage of commercialization as at the date of valuation, which provided us with critical information in order to determine the appropriate valuation approach. As the IP assets had not underpinned material revenue generation to date but were expected to underpin significant future revenues, we concluded that an income approach was the most appropriate method to value the Company’s IP assets on a fair value basis, while the cost approach was the most appropriate method to value the IP assets on an OLV and FLV basis. We furthermore utilised our extensive knowledge of IP acquisitions to determine the appropriate risk rates utilized in our valuations, determining these based on the likely buyer appetite for AdTech-related software solutions in going concern, distressed and insolvency scenarios.
We delivered a Full IP Valuation of the Company’s IP portfolio to the Client. Our report incorporated detailed narrative around the Company’s stage of commercialization, route to market, and IP portfolio, as well as the valuation approaches adopted and the key factors underpinning our opinion on IP value.
Our report also provided the Client with key insights into the value of the Company’s IP assets in going concern, distressed and insolvency scenarios, facilitating its strategic decision-making in relation to its future fundraising plans. A lender subsequently engaged us separately to provide the OLV and FLV in order to facilitate IP-backed lending.
