The IP-Driven Deal
An IP-driven deal means a technology deal focused on
intellectual property such as a patent portfolio. However, even a
non-technology transaction may involve important intellectual
property assets. Business executives recognize the importance of
capturing all the potential value of a transaction. A KPMG study
found that over 80% of mergers failed to produce any business
benefit in terms of shareholder value. IP due diligence, done early
and done right, goes a long way toward extracting incremental
value, managing risks and facilitating post-deal integration.
Identifying the IP
Identifying the target's IP is the first step in valuing IP,
which includes a range of intangible assets such as patents,
trademarks, copyrights, trade secrets and know-how. IP lawyers
systematically collect due diligence information to identify the
target company's IP. Due diligence focuses on patents and
patent applications that purport to cover the company's
