A designer and supplier of high-performance indoor cycles and digital platforms relied on for indoor training and rehabilitation. The Company generated revenues of circa £30m from sales of its smart bikes.
The Company developed sophisticated patented-protected power sensing technology enabling its bike products to deliver accurate, insightful data. It had earned a unique market and brand positioning from use of its equipment by elite athletes, including Olympic and internationally renowned sports teams. The Company’s products and data-driven platform were also relied on by healthcare providers, with more than 1m health assessments completed using the equipment, and military arms as key testing tools in health and fitness assessments.
We were introduced by the Company’s advisors to provide an intellectual property valuation opinion of the IP Portfolio to appraise the Company’s IP-collateral for a potential lender.
We valued the IP portfolio on three different valuation bases to enable the advisors to explore multiple options:
- Orderly Liquidation Value (OLV) basis;
- Forced Liquidation Value (FLV) basis; and
- Indicative Fair Value basis.
Using our Metisology®, we identified the core IP collateral as:
- unique and extensive data collected over two decades from its diverse customer portfolio of healthcare providers, military arms, fitness clubs, and professional teams and athletes, which would be extremely difficult to recreate.
- patent-protected power sensing technology which provides product differentiation in the market.
- a reputable brand known to be a trusted provider to the healthcare sector and longstanding partner to elite athletes and professional sports teams.
- proprietary software and firmware, which critically manages and controls connectivity, power management, bike systems and sensors and control systems.
Our IP diligence concluded that the OLV and FLV values were in fact closer than typically might have been expected, due to the valuable, extensive data and technology that would be incredibly difficult for a competitor to recreate, and therefore would preserve IP value in a downside scenario and be of high interest to a potential buyer.
We also provided the Company with IP advisory services and actions that could be taken to improve the strength and protection of IP portfolio as collateral for a lender.
The Company was able to secure IP-backed funding and continues to extend its international footprint.
IP Assets Valued: Brand-related assets, Critical Databases, Software, Patents and Key Organizational Knowledge.
