M&A Due Diligence Saves Company Millions
By identifying potentially problematic third-party patents in the early due diligence stages of an M&A transaction, Patterson + Sheridan helped lower the overall acquisition cost by tens of millions of dollars.
Our client, an international technology company, was acquiring an overseas entity. While conducting due diligence, we identified patents held by the acquisition target’s competitors that would affect the acquisition target’s main product. This knowledge enabled the client to negotiate a significantly lower acquisition price—by tens of millions of dollars. Following the acquisition, we worked with non-US counsel and caused that patent to be revised so that it no longer affected the acquired business.
Technical Knowledge, Team Approach Key in Managing Complex Patent Portfolio Transactions
In today’s deal-driven technology sector, a transaction’s value rests heavily in a target’s active patent portfolio. Often, the portfolio is the competitive edge the acquiring company is after in the first place. With so much at stake, companies rely on patent counsel with both legal and technical backgrounds to properly assess and manage the transfer of these crucial IP assets.
Longstanding client relationship equals in-depth technical knowledge
For more than eight years, Patterson + Sheridan has represented a world leader in mobile wireless technology with respect to its complex and active patent portfolio. Due to this longstanding relationship, our attorneys have a deep understanding of the underlying technology.
Thus, when the client decided to undergo a series of transactions that involved complex active patent portfolios, our main company contact knew there was no time to spare for educating patent counsel, and enlisted Patterson + Sheridan to manage the integration of the incoming portfolios.
Acquisition of multiple patent portfolios
Our integrated team acted quickly and seamlessly, working directly with the acquired company, its inventors, and domestic and international patent counsel to:
- Assess portfolios, including both U.S. and international patents, drawing upon the firm’s experienced docketing and paralegal team to ensure the complex process went smoothly
- Identify issues, including inventions not yet protected by patent applications. We quickly filed these applications to ensure crucial rights were protected
- Develop solutions, in all assisting the client with a series of three transactions over two years
During the process, we assessed hundreds of patents, filed countless applications and protected the client’s significant investment. These transactions were key to the company’s success in a very competitive market, and Patterson + Sheridan served as a trusted ally throughout.