409A Valuations — Are You Pricing Your Options Too High?
Start-up CFOs are fast realizing how early stage 409A valuations completed by quick cookie cutter, ‘textbook’ approach often result in inflated option prices and disgruntled emp
IP Valuation
Unparalleled blend of strong IP research, market research and valuation capabilities.
Why Aranca?
We are probably the only firm with research expertise in all domains — technology, market and financial valuation — that empowers us to deliver insightful valuation opinions on IP Assets across diverse business situations.
Capabilities
1000+ valuation clients, among the top tier valuation firms in the US
75+ years – overall experience of senior principals in business and patent valuations holding CFA, ASA and CPVA designations
Market Intelligence
150+ Fortune 500 companies leverage our market intelligence practice for multiple strategic priorities
200+ strong analyst team focused across industry sectors
2000+ products & services in which our research team has extensive breadth and depth of research
Technology Expertise
40+ strong team of patent experts
250+ technology domains researched
500+ global clients including enterprises, law firms, NPEs, universities and PE firm partners
Resources & Experience
30+ countries in which we maintain on-ground presence with capabilities to conduct multi-lingual B2B or B2C interviews
Access to vast banks of specialized data sources including Thompson Innovation, ktMine, industry reports, and many more
What is the overall strength of IP Asset to drive economic value?
Understanding/Application Area
- How does subject IP fit in the overall end-use product or solution?
- What are the key issues or pain points that IP being evaluated addresses?
- Are all current and potential key application areas identified?
Geographical Markets
- Which geographical markets seem most viable targets given overall industry dynamics, commercialization life-cycle and other relevant factors?
Technology Landscape
- How has technology in a domain evolved over time?
- How crowded is the domain currently?
- Are there any break-through innovations that can be potential business disruptors?
Strength or Superiority
- Is there any potent invalidation or infringement risk for key patents?
- How does IP being evaluated compare with incumbent or other alternative technologies?
How attractive is market opportunity from monetization perspective ?
Market Dynamics
- What is overall market ecosystem (structure, , value chain, etc.) in target markets?
- What is the addressable market size and demand-supply dynamics?
- What are key growth drivers and emerging trends?
Competitive Landscape
- Who are the key players providing products/solutions competing with subject IP?
- What are their market shares and how they have changed over the years?
Licensee Identification
- Are their any players that are infringing on the subject IP or will be sufficiently interested in licensing the technology?
What market share (revenues) can be expected in foreseeable future? What risks are involved in considered monetization options?
Monetization Strategies
- Given IP landscape and market analysis, what choices can be considered for monetization of technology – launch products, joint venture, licensing, others?
- How difficult is to assemble business resources other than IP to implement the business plan?
Licensee Analysis
- Which players are most likely targets for out-licensing and hence should be approach first?
- What is the level of difficulty , costs and time involved in pursuing licensing deals?
Financial Projections
- How much market share, revenues can Company possibly capture over the foreseeable future?
- How will unit economics will impact the road to profitability?
- How financial forecasts will change in different scenarios?
How much excess economic profits can be reasonably expected? What’s the overall business value and IP value?
Role of IP & Economic Analysis
- How much capital will be required to pursue the business or IP monetization plan?
- What is role of other resources? (e.g. partnerships and collaborations, sales & marketing, etc. )
Guideline Royalty Transactions
- What royalty rates have prevailed for licensing transactions involving similar IP in the past?
- What adjustments are deemed necessary to determine the appropriate royalty rate?
Valuation & Scenarios
- What income/market based valuation methods are suitable?
- What expected rate of return commensurate the risks involved?
- How different is IP value from overall business value? What drivers have most impact on value?
Our IP Valuation Experience
300+ assignments executed across major technology domains for diverse M&A, tech transfer, out-licensing and other transaction needs
Knowledge Library
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Founder’s Stock Sale — How Not to Turn it Into a 409A Nightmare
A Founders’ Stock sale can have serious and far reaching implications on the pricing of stock options due to 409A provisions. While the extent of t
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Is the common share of a start-up really worth so much?
In the case of early stage start-ups, valuation appraisers, using the prescribed method, always come up with a common share valuation, which is invariably far
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Are business valuation approaches lagging behind?
The finance world has been using the same methods to value businesses for a long time now. While the business world has changed significantly, valuation
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What 2017 Looks Like for Indian Start-up Valuations
India’s start-up ecosystem savored 2015. Several dominant consumer driven tech-startups (such as e-commerce portals, food-tech sites, online marketplaces, and aggregators) enjoyed soaring valuations. 2016 was another s
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Demystifying IFRS “Fair Value” Issues: How CFOs of unlisted entities in KSA should gear themselves up?
Kingdom of Saudi Arabia (KSA) has now joined a set of 130+ countries in the implementation of IFRS for listed companies. The adoption of IFRS in
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Fintech Decoded
Over the last few years, Fintech has emerged as the hotbed of deal activity in the technology domain across universes (VC, PE and M&A)
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How to Get the Most Out of IP Financing
The use of intellectual property as collateral to obtain finance is an increasingly common phenomenon. Over the past three decades, the proportion of tangible assets
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A decade later, most Indian internet companies are as far from an IPO as when they started off
“The barriers to entry in several internet businesses are really low,” Aranca’s Mantena said. “Any competitor can come at any time and start the same bu
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Oman to reap revenues from new VAT system
As GCC countries start looking at the real impact of the coming Value Added Tax (VAT), planned for the beginning of 2018, the country of Oman
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Modi’s surprise move on rupee notes has come as a pleasant surprise indeed for Indian internet startups
The Narendra Modi government’s decision to replace the Rs500 and Rs1,000 denomination notes with new ones has done in two days what Indian internet s