Intangible assets — including patents, trademarks and trade secrets — are increasingly the most valuable assets involved in M+A deals. And yet at many corporate law firms, M+A transactions still only focus on traditional valuation models based on historical financial data and accounting metrics such as EBITDA, price-earning multiples and cash flow projections. Unfortunately, these methods fail to capture the unique features of IP assets and risks.
As a full-service technology and IP firm, we have an intimate understanding of the unique dynamics that intellectual property assets bring to corporate mergers, acquisitions and divestitures. We have advised clients in numerous complex and high-value M+A transactions, providing insight into critical issues such as exposure to patent litigation, freedom to operate, licensing and strength in key markets.
Technology expertise and business savvy
The last thing anyone wants in an M+A deal is an unwelcome surprise. Our attorneys can provide a comprehensive analysis of the intellectual property you may be acquiring, including contractual obligations, patent risks, triggering events or pending litigation. We are not just transactional lawyers — we understand what patents cover and consider how new intellectual property factors into a company’s business strategy.
Clients value our rare mix of advanced technology know-how, intellectual property skill, and business savvy, gained through years of in-house corporate experience. Our ability to analyze and understand both the technology and the business sets us apart from general practice firms and adds significant value in any M+A transaction. Through the years, our team has handled dozens of nine-figure deals, including transactions valued in the billions of dollars.
Our negotiation, valuation, and due diligence services include:
- Assessing the value of IP assets, pinpointing strengths and weaknesses that can affect the transaction’s purchase price
- Determining the strength and scope of patent claims
- Evaluating design-around opportunities
- Ascertaining litigation risks such as invalidity and infringement
- Examining IP assets for licensing and enforcement opportunities
- Advising on the impacts of the transaction on other business units
- Helping determine potential market revenue
In addition to taking a lead role in many complex transactions, we also often serve as our clients’ behind-the-scenes problem solvers, navigating the intricacies of M+A deals to exploit IP rights and prevent conflicts or lost business opportunities. In fact, corporate law firms often turn to our team to assist with transactions involving complex intellectual property matters.
Whether we are working alongside co-counsel or providing comprehensive M+A advice from soup to nuts, the Patterson + Sheridan team can help make your next transaction smooth and strategic.