IP Valuation: Decoding the Value of Intellectual Property

The Deal Board

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 [phone] 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 [phone] or email him at [email protected]

Key Points From This Episode:

• [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.

Links Mentioned in Today’s Episode:

The Deal Board Podcast

Subscribe to The Deal Board Podcast YouTube Channel

The Deal Board on LinkedIn

The Deal Board on Facebook

United Franchise Group

Transworld Business Advisors

Transworld on LinkedIn

Transworld on Facebook

Call us at [phone]

Email us at [email protected]

Calvin Tampubolon

Calvin Tampubolon on LinkedIn

Call Calvin Tampubolon at [phone] or email [email protected]

Jonathan Cheung

Jonathan Cheung on LinkedIn

Call Jonathan Cheung at [phone] or email [email protected]

Oommen Thomas on LinkedIn

Call Oommen Thomas at [phone] or email [email protected]

Venndigm

Project SkillStrong

KPMG US | Careers

Northeastern University

#thedealboard #transworldbusinessadvisors #realestate #commercial

Quotes:

“[IP valuation] is an essential topic for entrepreneurs, investors, and anyone interested in maximizing the value of their intangible assets.” — Calvin Tampubolon [0:02:37]

“Most people are focused on the number of the valuation, but perhaps more important is the story behind the valuation.” — Oommen Thomas [0:08:12]

“The thing about IP is that its value is not just dependent on the economy. If somebody comes up with an alternate technology that can do what you do much more efficiently, all of a sudden your highly valuable IP that was highly valuable yesterday, is no longer valuable today.” — Oommen Thomas [0:19:57]

“If you don’t do your due diligence, you’re going to pay a price.” — Oommen Thomas [0:24:54]

“Just because you’ve got a patent or just because you’ve established a trade secret doesn’t mean that it’s all yours; you have to actively be engaged in protecting it and realizing value from it.” — Oommen Thomas [0:32:16]