A developer and provider of education technology (“edtech”) solutions, which was in the process of developing a software platform offering career guidance to young people. The immersive educational content on the platform had been tailored specifically for the Indian market, and the Company had partnered with a national educational organisation in the country which had been anticipated to provide access to circa 20m users. Revenue was expected to be generated from schools, universities and employers throughout the country, with the Company identifying a total addressable market of circa 200m pupils.
The Company faced financial distress due to a delay in its commercialisation plan and withdrawal of investment support, leaving the Company without the necessary funds to complete and launch the platform.
We were engaged by the Company to provide a distressed IP valuation in order to inform strategic decision making, ahead of the Company entering into an imminent liquidation process.
Recognizing that the Company had not fully developed its technology, 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.
We conducted thorough due diligence to identify the software assets developed and owned by the Company. Given the Company's extensive history of R&D and its previous product development, it was crucial to distinguish between the assets owned by the Company and those held by its partners. We found that the educational content underpinning the platform was owned by third-parties, but that the Company owned the partially developed software platform, alongside some brand-related assets.
However, the software was not well documented and would require substantial additional investment for full development and commercialization, which would limit the buyer demand for the IP. Additionally, we determined that as the Company's software had been specifically tailored for users in India, the pool of likely buyers interested in acquiring the IP would be further narrowed, potentially influencing the overall marketability and value of the IP.
We delivered an IP Valuation 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’s Management team, providing them with the necessary information to explore various corporate restructuring options and consequently enter into a liquidation process.
