Fall 2014 issue of Horizons

LIFE SCIENCES & TECHNOLOGY LIFE SCIENCES & TECHNOL GY

Intellectual Property and Exits: Tips to Maximize and Protect Value by Jason Mannello, CFA

A n exit or other type of liquidity event can occur anytime during the lifecycle of a company. It pays to be aware of this and to prepare ahead of time. The more prepared a company is for an exit, the more success it will have in getting a deal done and maximizing the seller’s proceeds. Due diligence preparedness is critical—potential acquirers or investors will want to “kick the tires” on your company’s financial information, information technology infrastructure, and other critical areas. For companies operating in life sciences and technology related industries, intellectual property (IP) due diligence is critical as well.

often thought to rest solely on the acquirer of a potential target. However, this does not preclude a company from performing its own IP due diligence as part of its overall IP strategy. IP due diligence is about understanding a company’s IP portfolio. It is also about understanding and ensuring the protection of IP value. This requires knowledge of the risks associated with the IP and what is being done to protect the IP that the company relies upon to operate and maintain a competitive advantage. IP due diligence is a critical component of the overall IP strategy. Being proactive and developing a comprehensive IP strategy that includes internal IP due diligence provides many benefits, including:

The responsibility of performing due diligence, including IP due diligence, is

page 28 | horizons Fall 2014

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