By Christopher M. Cauble, Principal
As 2019 brings the start of new deals and closes old ones, intellectual property assets (broadly known as IP) should be at the forefront of the private equity investor’s mind.
IP can secure debt leverage, be sold after purchase, provide new revenue streams, and can increase the company’s valuation at sale. Keep these thoughts about IP in mind as you plan and execute your investment strategy this year.
IP can be divided into four broad categories: patents, trademarks, copyrights, and trade secrets ….
When evaluating a private equity transaction, make sure to identify all the potential intellectual property assets in the transaction. Take time to review what the company does, the intellectual property assets the company has explicitly identified, and where the company may have overlooked value in intellectual property.