IP Valuation advice can be required in a number of distressed scenarios:

  • A director facing an insolvency event;

  • A private equity professional looking to gauge the value of the IP assets in the event of an insolvency process;

  • An insolvency professional wishing to understand the value of the IP assets prior to carrying out a marketing exercise/pre-pack sale; or,

  • Where a global offer for Company assets has been made and an apportionment figure is being contemplated.

What is an Intellectual Property Valuation Opinion™?

The Metis Partners Intellectual Property Valuation Opinion™ is a valuation product which identifies and assesses the IP assets existing within an insolvent company and provides a statement on likely IP value on a distressed basis.

We have provided our Intellectual Property Valuation Opinion™ to insolvency practitioners appointed to companies in industries including: retail; oil and gas; bio sciences; photonics; renewables; healthcare; gaming; construction; engineering; media; professional services and many more.

All types of IP assets are identified in our Intellectual Property Valuation Opinion™, including: patents; trade marks; copyright material; design rights; website and domain names; data; software as well as brand value across a certain geographic area or within a niche market.

Why obtain an Intellectual Property Valuation Opinion™?

  • To ensure fair value is paid for IP assets
  • To determine value in a difficult asset class
  • To gain comfort on the acceptability of any offer
  • To reduce risk exposure for insolvency practitioners and increase transparency for creditors
  • To comply with statutory duties
  • To understand options within an insolvency process

Our Intellectual Property Valuation Opinions™ are relied upon in a range of insolvency scenarios, including Administrations (pre-packs included) and Liquidations. Our valuations are conducted on a distressed basis, in reference to both company financials and benchmarked against our unique real life primary data which has been gathered from IP asset sales carried out for insolvency practitioners through years of industry practice. By clearly identifying and cataloguing the IP assets in a case, our IP Valuation Opinion™ ensures compliance with SIP16. Obtaining an IP Valuation Opinion™ improves the chances of returning fair value to creditors and reduces risk exposure.

Our Valuation Approach

In order to provide the Metis Partners Intellectual Property Valuation Opinion™, a two-stage process is followed:

  • The Process – Intellectual Property Discovery Exercise – it is crucial to first identify and assess the IP assets and their commercial context. Metis Partners carries out desk-based research before speaking with a director or a member of the Company’s management team, by phone or on site, as well as seeking information from any other relevant professional advisers, such as patent or trade mark attorneys.

  • The Process – Reaching our Opinion on Value – Metis Partners is in a unique position to provide valuation advice in distressed scenarios, having run numerous IP sales exercises in both formal insolvency and financially distressed situations. Our IP Valuation Opinions™ are conducted on a distressed basis and reference is made to both the financials of the Company and specialist royalty rate databases and then benchmarked against our unique database of IP asset sales. This approach means that we can provide a realistic and meaningful valuation range.

  • SIP 16 Compliance – Although pre-pack administrations are a useful business rescue tool, they are criticised by creditors largely because of a lack of transparency in relation to the circumstances of the sale of business assets. An Intellectual Property Valuation Opinion™ is essential in these pre-pack scenarios to ensure that insolvency practitioners comply with SIP 16 and their regulatory duties. Our Intellectual Property Valuation Opinions provide an explanation of the valuation methodology used in every case, which will provide stakeholders with the confidence that the IP valuation has been carried out in a transparent manner and ensure compliance. We also provide advice on the suitability of running marketing exercises, which is often conducted on an accelerated basis.  Under the revised SIP 16, agents must be able to confirm professional qualifications, independence and their carrying of appropriate levels of professional indemnity insurance – all of which we are able to do. For more information and our thoughts on what the Graham Report and SIP 16 mean for dealing with intellectual property click here.

Timescales and Fees

In determining our fees, we use a matrix which takes into account turnover, the likely level of the valuation and the overall context (i.e. the risk involved in giving valuation advice) as well as timescales, the complexity of the issues and the length of the Valuation Opinion required.

We aim to complete valuation assignments within 10-14 days, however this can be accelerated to 2-3 days where required.

Intellectual Property Valuation Opinion™ Industry Recognition

Our award-winning team’s experience in relation to IP assets in distress is second to none and we are widely acknowledged as the UK market leader. Our innovative service line and expertise has been recognised by both insolvency practitioners and relevant industry bodies as an innovative and efficient approach to valuing intellectual property assets in insolvency scenarios.

We were delighted to win Asset Valuer / Auctioneer of the Year in the Insolvency & Rescue Awards 2015 and 2011 and to have been nominated as a finalist at the TRI awards for Asset Valuer / Auctioneer of the Year in 2016 and 2017.