Supporting Financial Investment in an IP Portfolio

The Situation
A large industrial client needed commercial due diligence services for an investment in a large intellectual property (IP) portfolio. The portfolio included mature but underexploited IP with hundreds of potential licensees and applications in six different markets, some of them in spaces adjacent to the client's current business.

The Solution
Duff & Phelps developed financial projections based on estimates of future sales of the products subject to the patents, compliance rates, royalty rates and assumptions about the penetration rate of newer technology.

The Result
The analysis Duff & Phelps provided enabled the client to negotiate and close the deal with confidence. The result has been a profitable investment that has performed in accordance with projections.

The Duff & Phelps Difference
Duff & Phelps had the depth of market knowledge required to validate financial projections in all of the target's markets and the in-depth understanding to help the client move forward with confidence. Duff & Phelps also uncovered hidden assumptions underlying the financial projections, rigorously testing the validity of the key assumptions against industry and market research.