3 minute read | December.01.2022
The objective of an intellectual property due diligence investigation is to provide an evaluation of the quality of the IP assets that cover the company’s commercial products and services. For life sciences companies, their patent estate is often a crucial piece of their business and revenue model. However, investors do not always view a due diligence of these IP assets as the center of a prospective business transaction, because the valuation of the company is often more centered on its scientific and commercial potential.
Due diligence can uncover potential risks and advantages associated with the IP assets that may affect the company’s value, and these risks are not always obvious from a cursory review. Often, the benefits of a due diligence investigation outweigh the associated expense. Although a deep dive into patent landscapes is not necessary for every transaction, a baseline understanding of the target company’s patent estate can provide valuable insight into the company’s current position in the technology space, as well as its long-term prospects.
Learning how to identify the appropriate level of IP due diligence by using our considerations can help with decision-making and risk-assessment calculations for a potential investor.
For further considerations, be on the lookout for our next installment where we take a deeper dive in to the due diligence action items. Please contact Gargi Talukder for advice on a due diligence assessment.
*Note that all “action items” are general suggestions that may need to be refined for the particular target company involved.