Intellectual Property Transaction Solutions
Unlock value from your intellectual property portfolio
The strength of a company’s technology and intellectual property (IP) can distinguish a great company from a merely good one. Yet in many transactions, IP value is an afterthought. Aon has changed the way companies can realize the full value of their IP whether they are looking to pursue M&A or raise equity or debt capital.
Tell a stronger value story to buyers
Intangible assets today comprise 90% of total asset value in the S&P 500. In most transactions, however, IP-intensive companies fail to position their IP effectively as a driver of enterprise value. Instead, it is relegated to a confirmatory due diligence item, considered in the final stages of the deal – after value and terms have been negotiated.
Aon’s Quality of Intellectual Property report (QoIP) helps companies articulate - and therefore realize - the full value of their IP in an M&A or financing transaction. The information is delivered quickly and in plain English.
With QoIP, a deal team can:
- Catalogue an IP portfolio, including patents, trade secrets, know-how, data, software, copyrights, trademarks, and brand
- Highlight core technologies protected by patents and trade secrets
- Identify and measure competitive advantages enabled by the IP
- Define IP coverage of existing and future revenue streams
- Benchmark IP coverage and quality against competitor portfolios
These insights drive a unified narrative about technology, innovation, and IP protection across the body of marketing materials – management presentation, CIM, and the QoIP report itself.
Access debt capital based on the strength of IP
When raising capital, companies typically have two options – selling equity or borrowing based on the strength of the balance sheet or cash flows. For emerging IP-rich companies, incurring debt is not always an option and diluting ownership is often not ideal.
Now there is an alternative way for companies to access less expensive debt capital. Aon has developed a solution that combines propriety IP valuation tools and a collateral protection insurance policy, which enables businesses to turn their intellectual property into collateral for asset-based loans.
This offers both borrowers and lenders a new opportunity to unlock a valuable, and previously untapped, marketplace.
