IP Valuation: How is Intellectual Property Valued?

Transcript

Andy and Jessica take a break from The Deal Board Podcast as Calvin Tampubolon and Jonathan Cheung step in as hosts. This week, they speak to Venndigm cofounder Oommen Thomas about the growing importance of intellectual property valuations and specifically, the role of IP valuations in mergers and acquisitions. After defining IP valuation, explaining why it matters, and detailing its role in M&As, Oommen walks us through his approach to IP valuation in M&A transactions. Then, we learn where IP valuations sit in the due diligence process, how valuations are affected by market conditions, common pitfalls to avoid, and how to improve one’s IP value before a merger or acquisition. To end, Oommen implores listeners always to remember the power of perception in big money deals.

Listing of the Week:

Eli Tatem (Western Carolinas) is selling a profitable trucking company with explosive growth potential of over $14 million in revenue annually! The fleet of over 40 modern trucks is well-maintained, ensuring reliable and efficient deliveries nationwide. A strong team of drivers has never been an issue for this company, and The Office Team is tooled up and ready to help the new owner take the company to the next level. For more information, call Eli at (864) 527-5995 or email him at [email protected]

Deal of the Week:

Brook Hartnett (Boston) sold a storage container leasing business that has been running for 50 years. The seller was willing to let of the company amidst other business opportunities, and the buyer is a first-timer who wants to build his entrepreneurial profile before leaving his current job. For more, call Brook at (631) 965-9073 or email him at [email protected]

Key Takeaways

[00:00] Why IP valuation is a hot topic, and why it will remain prevalent for years to come.
[02:26] Transworld’s Calvin Tampubolon and Jonathan Cheung step in as today’s hosts.
[03:47] Welcoming Oommen Thomas as he explains who he is and what he does.
[06:30] Defining intellectual property valuation and unpacking why it matters.
[09:27] Understanding the role of IP in mergers and acquisitions.
[11:07] Oommen details his approach to IP valuation in M&A transactions.
[16:15] The specific IP-related issues that should be addressed in the due diligence phase.
[18:11] How market conditions affect IP valuations.
[21:55] Real-world examples of how intellectual property valuations influence M&A deals.
[23:45] Common pitfalls to avoid in IP valuations for M&As.
[27:55] How a business can improve its IP value before pursuing an M&A.
[29:55] Oommen’s final thought for listeners explores the importance of perception.
[34:46] Listing of the Week: Eli Tatem (Western Carolinas) is selling a profitable trucking company with explosive growth potential.
[37:35] Deal of the Week: Brook Hartnett (Boston) sold a storage container leasing business in Massachusetts.

Call us at (888) 719-9098
Email us at [email protected]
Call Calvin Tampubolon at (909) 561-6771 or email [email protected]
Call Jonathan Cheung at (626) 864-3369 or email [email protected]
Call Oommen Thomas at (510) 685-3375 or email [email protected]

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Mentioned in This Episode

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• Northeastern University