Authoritative IP Valuation
Sylvain Roy Avocat (SRA) specializes in the valuation of intellectual property, technologies and IP driven businesses. The firm is expert at valuing IP rights, deep-tech and other hard-to-value intangible assets.
Since 2004, SRA has prepared over 200 independent valuation opinions that have helped clients execute transactions and better allocate resources.
Our clientele is global and includes research institutions, industrial groups, technology companies, investment firms and startups.
Trade your IP or finance your business effectively
Be convincing with a credible IP Valuation Opinion
Valuing IP assets contributes to risk mitigation when dealing with critical business decisions:
- Fund-raising (typically seed to Series B)
- Investment and capital allocation
- Licensing, sales of assets, technology transfers, royalty negotiations
- Merger and acquisition
- Inter-group transactions (transfer pricing), discussions with tax authorities
- Litigation – assessment of damages
An IP valuation effort aims at assessing the economic value of patents and other IP rights. The focus of an IP valuation effort is usually to demonstrate how IP rights can be used to control a market for goods and services. In which case, the IP value reflects the potential contributing value of the IP to the sales of products implementing the IP, and ultimately, revenues and cashflow.
Using a variety of proven methodologies and techniques, SRA carries out a detailed calculation of the risk adjusted net present value for the IP, products and technologies. When assessing hard-to-value intangibles for transfer pricing purpose, SRA works in accordance notably with the methods and requirement laid out in the OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations.
Our valuation opinions and valuation reports formats are adapted to fit the client’s needs. We provide long form and “snapshot” valuation opinions, as well as valuation templates that can be used and updated in-house to track factors influencing the value of your IP and to follow their evolution.
OUR UNIQUE APPROACH TO VALUATION
While it is common in the industry to value IP using comparable analysis delivered under a “black box” approach, SRA believes in a more transparent method. Comparable analysis can be useful in some instances, such as when sorting patent portfolios in IP-rich industries. However, at SRA, you will not find any black box.
SRA believes in building credibility gradually by presenting well-documented, rational arguments and assumptions. Each IP right is distinct and unique; its value is subjective and specific to its context of use. Therefore, it is important to demonstrate how the particular IP is relevant in the marketplace and why, and ultimately how it can be converted into revenue and profit. This is a language that your readers will understand.
Our valuation opinions are structured by first presenting the IP rights and their commercial applications. A market model is then carefully developed to assess market needs for products and services implementing the IP rights. This includes determining the window of opportunity: the period of time during which the IP will be relevant before obsolescence or IP expiry. An income model is then developed to demonstrate a complete business case for the commercialization of said products and services. A valuation method is applied to value the underlying business; when possible, several methods are used. Finally, we assess how the IP rights can effectively protect the business value.
In many instances, we assess IP before a client has a clear business plan. Our IP valuation opinion thus often serves as a business plan. The challenge lies in developing assumptions and models that are convincing to businesspeople knowledgeable in the field.
There is an element of futurology involved – part art, part science. This is where SRA excels.
The cost of valuation services can vary and is typically based on either hourly or fixed fees. The budget and timeline for preparing a valuation opinion depend on several factors, including the level of precision required for the valuation, the client’s objectives, the complexity of the IP, technology, business and industry, and the availability and quality of the client’s documentation.
For a single patent or invention, a typical timeline for a valuation effort is 3 to 4 weeks. However, reviewing large patent portfolios may take several months. Maintaining frequent contact and good communication between SRA’s team, inventors and client’s managers is key to ensuring a successful valuation project.
LEARN HOW SRA CAN HELP YOU MAKE INFORMED DECISIONS ABOUT YOUR IP ASSETS
A budget estimate for a valuation effort can be established based on several requirements such as the context justifying the valuation (e.g. M&A, licensing, litigation), the urgency and complexity of the case, the category(ies) of IP rights and their maturity and width, the existence (or lack thereof) of a market or forecasted future market, the existence (or lack thereof) of products/components reducing IP in practice, and the existence (or lack thereof) of existing market and revenue forecasts revenue flow, royalties and/or financial forecasts.
Here are some examples of our valuation practice (I):
- Valuation of biofuel production processes in the context of an intra-group asset transfer for transfer pricing purposes; The intellectual property included several patent families and over 350 patents. Our client was a Chinese industrial group and its U.S. and Swiss subsidiaries.
- Valuation of IP, methods and services, in the fields of e-commerce, AdTech, privacy management, immersive medias, media servers and real-estate, for financing and licensing purposes.
- Valuation of various technology components of a cyclotron system to produce medical isotopes in the field of nuclear physics. This was used to determine a cost and revenue sharing arrangements between two research institutions.
- Valuation of an airport security technology and manufacturing plant for a Swiss client, which led to a $600 million acquisition offer by a Chinese group.
Here are some examples of our valuation practice (II):
- Valuation and advisory on monetizing an on-chip CO2-based cooling system for data centers.
- Valuation of various pioneering augmented reality (AR) patents to determine the relative value of each participant in a patent pool.
- Valuation of medical devices IP, especially orthopedic methods, systems and apparatus.
- Market assessment, value chain mapping and identification of potential industrial partners, with respect to several IT and cleantech projects, among which:
- An anode-coating technology adapted to hydrogen fuel cells.
- A catalytic process for the safe and economical conversion of formic acid into pure hydrogen and carbon dioxide (and vice versa).
- A process allowing large batch manufacturing of carbon nanotubes and industrial gas by-products from carbon dioxide.
- Valuatin of an industrial project and Plant Breeders’ Rights (PBR) using hemp biomass as thermal insulation material.