In this whitepaper, Adam discusses how VC investments can improve monetization options and mitigate risk when diligence considers IP assets from a holistic business perspective, beyond the traditional legal opinions.
POSTED BY ipCG Team AT 12:38 P.M. March 24, 2017TAGS: Adam Bulakowski | ipCG Team | Disruption | Process | Strategy | Valuation
In this whitepaper, Adam connects market value to innovation-related growth potential, a practice that requires diligence beyond traditional analysis, particularly on knowledge intensive businesses.
POSTED BY ipCG Team AT 8:07 P.M. August 01, 2016TAGS: Adam Bulakowski | ipCG Team | Metrics | Valuation
POSTED BY Adam Bulakowski and Seth Cronin AT 4:27 P.M. Apr 18, 2016TAGS: Adam Bulakowski | Strategy | Valuation
In this whitepaper, Adam outlines the changing customer and competitor landscapes facing today’s banking industry and argues that developing a thoughtful innovation strategy, considering changes with both customer needs and competition, is necessary to maintain profitability.
POSTED BY ipCG Team AT 4:06 P.M. January 15, 2016TAGS: Adam Bulakowski | ipCG Team | Innovation | Strategy | Banking
For more than a decade, firms have focused much of their "open innovation" (OI) efforts on one direction - inbound OI. The push has been fueled in part by a wealth of scholarly articles and disclosures by the likes of Procter & Gamble about accessing the marketplace of outside ideas. The outbound direction of OI, while arguably less intuitive, offers a number of opportunities for firms to capture value from either internally generated or acquired innovation.
POSTED BY Adam Bulakowski AT 12:21 P.M. December 17, 2015TAGS: Adam Bulakowski | Innovation | Outside Publication | Open Innovation
Innovation capabilities, from understanding customers to commercializing new products, determine financial success for nearly all firms in today's economy. By building a capability to manage IP, a firm maximizes the potential for a lasting return on innovation.
POSTED BY Adam Bulakowski AT 4:12 P.M. July 6, 2015TAGS: Adam Bulakowski | Commercialization | Innovation | Invention | Strategy
Valuable IP will define an upcoming chapter in China’s growth story. China recognizes that innovation is an imperative for its long-term economic growth. Less discussed amongst the country’s initiatives to promote innovation is the fact that China’s national system for protecting IP rights continues to strengthen. The rapid evolution of China’s IP system requires emergent IP strategies from all domestic and foreign firms.
POSTED BY Adam Bulakowski AT 9:28 A.M. May 12, 2015TAGS: Adam Bulakowski | Innovation | Strategy | China
Over the past year, ipCapital Group has seen a dramatic increase in requests to value IP portfolios. The engagements range from advising on high-profile deals to supporting capital raises for small, private companies who have few assets other than IP. We continue to use these experiences and lessons as feedback to our methodology, which is critical as the landscape evolves. In our latest video, we highlight a few of those lessons.
POSTED BY Adam Bulakowski AT 11:15 A.M. Oct 24, 2012TAGS: Adam Bulakowski | IAM | Process | Strategy | Valuation
Is your business strategy aligned with the current market? Or, are you exhausting resources on innovations for a bygone market opportunity? Reboot your innovation strategy with a broader perspective.
POSTED BY Adam Bulakowski AT 5:45 P.M. Jul 25, 2012TAGS: Adam Bulakowski | Innovation | Process | Strategy
As a follow-up to the recent M&A post, this article examines common IP-related drivers of ROI, from the perspective of an investor, such as a private equity firm.
POSTED BY Adam Bulakowski AT 8:04 A.M. Jun 13, 2012TAGS: Adam Bulakowski | Commercialization | Strategy | Valuation | Mergers and Acquisitions
Inorganic growth strategies through M&A don’t always account for the potential of intangible assets. M&A teams that consider IP and other intangible assets both before and after a deal can improve success with more accurate pricing and more efficient value extraction.
POSTED BY Adam Bulakowski AT 8:35 A.M. Jun 7, 2012TAGS: Adam Bulakowski | Commercialization | Strategy | Valuation | Mergers and Acquisitions
Making the decision to invest in patented technology requires a manager to map and evaluate a series of decisions and uncertainties. Real options pricing can enhance IP valuations in situations where key assumptions regarding market, financial, and technology variables are identified and estimated with reasonable accuracy. When coupled with the income and other valuation approaches, such as comparable market transactions, options thinking can guide financial and strategic decision making.
Last week, Microsoft paid $1.06B to purchase and license about 1,100 AOL patents. Putting the issues of purchase premium and strategy aside for another discussion, this transaction presents an interesting case on IP value expectations and communications.
POSTED BY Adam Bulakowski AT 8:20 A.M. Apr 17, 2012TAGS: Adam Bulakowski | Valuation
Over the past two years, ipCG completed several IP valuations in the IT industry. In most cases, our clients contracted the models for external purposes - to estimate IP value for M&A negotiations. However, work products generated significant internal benefits as well. We share this case study with you to demonstrate the many strategic and managerial insights that can be gleaned from thoughtful IP valuations.
The 25% rule is a rule of thumb used to estimate royalty rates for intellectual property (IP) licensing transactions by approximating the risk/reward relationship between a licensee and licensor. A licensee only pays a portion of profits to the licensor, because of the additional costs and uncertainties that it incurs to convert the technology in to revenue.
Business strategy boils down to choices, with the ultimate goal of maximizing firm profits. The firm plans its activities, e.g. operations, marketing, finance, R&D, to support its business strategy. However, few firms use IP strategically by aligning IP activities with their business goals.
In formulating its business strategy, a firm analyzes both its external environment and its internal composition. Externally, the firm studies the structure of the industry in which it competes, identifies market opportunities and threats, and researches social, political, technical, and economic trends.
Intellectual property (IP), such as a patent portfolio, is a critical intangible asset for innovative companies. However, IP presents management and communication challenges because few companies catalog their IP strategically or link its development to value creation, i.e. increased revenues or decreased costs.
Whether a company uses its IP offensively or defensively, a company's investment in IP strategy can be implemented cost-effectively in both the short and long term. Four practices to consider are: an IP portfolio audit, strategic foreign filings, defensive publications, and strategic portfolio development.
Small companies can face large financial hurdles on the way to securing intellectual property (IP) protection, particularly with patents. Accumulated patent lifecycle costs can exceed $125,000 for one US & one PCT filing. This cost may include prior art searching, patent drafting, patent prosecution, and maintenance fees.
IP valuation is complicated by a host of factors, such as accessing market comparables, determining IP risk, handicapping potential licensees, and calculating the uncertain economic benefits to be generated by IP assets. While many sources enumerate methods of IP valuation, few provide real-life applications or guidelines.