Intellectual Properties have become an integral part of Asset valuation while identifying the suitable target companies in the context of Mergers & Acquisitions (M&As). Identifying and locating of patent and other related Intellectual property asset counts to be the most crucial element of any strategic M&As. Often Technology-savvy companies with a promising experience in product and service expansions tend to acquire a specific technology along with the technical information which suits best for their area of Interest. However, once the company identifies the target companies, it further requires the acquiring company to determine whether the target’s technology as good as it is claimed to be? Is the company priced fairly? Who are the key inventors and will they stay with the merged or acquired company?
As a part of broad strategic plan, every expanding companies shall possibly determine these factor while entering into a M&A. In order to determine the particulars abovementioned, the acquiring company could ascertain the R&D capabilities and technical expertise possessed by the target company for the purpose of valuation of the technological claims made. This question of determining the technological capabilities and expertise could be discovered by either conducting a Patent technology search or by way of testing out the capability of licensing out the concerned technology or invention.
Further, the acquiring company should also discover the vital or Key inventors whose contributions were relevant for the development of the key technologies. This could assist the acquiring company in absorbing such researchers or developers and taking them on board as part of the acquisition.
This strategic analysis for the purpose of closing a successful M&A deal can only be achieved by way of utilising various relevant and key IP tools and techniques such as carrying an appropriate Patent Information Search, IP Valuation, IP Audits, Acquiring and Managing of Patent Portfolios, Analysing the technology trend in particular countries, Analysing the key inventors involved in the particular area of technology, Strategic Licensing, etc.
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