Why patent valuation...?
In an intensely competitive economy, intellectual property assets play a critical role in the performance and growth of businesses as companies continue to invest significantly in R&D and product lifecycles become shorter. From 17% in the 1970s, intangibles currently account for 80% of S&P 500 companies’ market capitalization and this significant shift in market value of S&P 500 companies over their book value in a way reflects the tremendous growth in value of IP assets.
As businesses continue to focus on optimum exploitation of intellectual property, a proper understanding and assessment of its economic value has become crucial for strategic decisions relating to M&A, divestures, licensing contracts, securitization of IP assets, infringement litigation and providing an effective basis for R&D investment decisions.
Aranca Framework for Patent Valuation...
Valuation of patents is a complex subject that requires multi-disciplinary skills to understand various factors that impact its value, including but not limited to:
- Technology (Novelty, competing technologies, remaining useful life, nature of protection)
- Legal (Future risk of litigation, patent dependency, legal status)
- Market (Anticipated market response for new technology, size of addressable market, alternate technologies)
- Strategy (Strategic fit for potential buyers, monetization strategy)
- Financial (Required capital investments, market share forecasts, projected revenues and costs)
Aranca’s proprietary framework for valuing patents addresses all key elements impacting IP value, and encompasses patent strength index, market opportunities, role of IP and estimated economic benefits.
Aranca’s patent valuation services have been leveraged by several enterprises, private equity and technology transfer firms. By virtue of having strong business research capability across verticals and geographies, business appraisal expertise for performing audit-ready valuations of intangible assets and financial due diligence skills in addition to superior intellectual property research skills, Aranca presents a unique proposition to its clients.
- Patent valuation related to fuel cell for a leading power solution provider
- Patent Valuation for an e-commerce platform for one of the leading law firms in New York
- Patent valuation related to imaging technologies for blood analysis for a biotechnology company in the US
- Patent valuation related to patent for movement detection for a leading mobile platform supplier in the US