Tech+IP assets often are a source of substantial value in Companies that can be leveraged to create durable competitive advantage, generate standalone value through licensing or sale, or a combination of the two. While IBM and Qualcomm were early pioneers of a “combined” approach, as a best practice almost all innovative Companies should -- and the clients listed above have -- engaged our Tech+IP team to determine whether they have material “core” and “non-core” IP that might be licensed, transacted, or monetized in another way. Sometimes these assets come from acquisitions done over time, a business unit reorganization, or a sale leaving behind patents valuable to other companies.

After every acquisition a CFO should inquire whether there are any synergies to be had from acquired IP; before any divestiture a CEO and Board should ask if there is any IP that has material value and should be transacted separately to optimize value, and every investor, creditor, or other stakeholder should assess whether there is material Tech+IP value.

The durable value in Tech+IP assets, and the primary and secondary markets for them, have made advanced technology and IP valuable assets for companies and investors. Sometimes the objective is liquidity or non-dilutive financing, and IP can be a material source of value. In “tech enabled” businesses, IP can represent a material element of go-forward value, or a backstop on value, if things don’t go as planned with the core business. Companies that have IP licensing revenue lines, “spin outs” or “go privates” might be the right strategic and financial solution. For financial sponsors, understanding the various return metrics, risk adjusted, is critical to understanding which investable opportunities are going to be winners.

The Tech+IP team has assisted clients in each of these kinds of scenarios, and Tech+IP Capital principals, working through GT Securities as a registered broker dealer, are available to help clients with capital formation or equity-related transactions. On a selective basis Tech+IP may co-invest or lead invest, consistent with our merchant banking business model.

In most technology-enabled businesses, C-Suite executives, boards, business and legal personnel, and other stakeholders have a need to know whether, and to what extent, their patents, technology or other IP has material value, is “core” or “not core” to Company products, and if there are deals that could be done to unlock substantial additional value. That analysis is about much more than the number of patents a Company holds, with some legal analysis. These factors must be combined with market knowledge, financial expertise, and being in the market every day.

We provide all the key ingredients needed by clients, like those listed above, and their boards of directors to support decision making best practices. This unique capability of the Tech+IP team, combined with experience working in the same operating environments as clients makes us an ideal strategic advisor.