Quality of Intellectual Property
How to Value Intellectual Property
Today, 90 percent of the value of the S&P 500 is composed of intangible assets, including intellectual property (IP). Industry leaders protect their innovations with IP, which can create durable enterprise advantages. Yet, in many transactions, companies often fail to position their IP investment as a driver of enterprise value. Instead, IP is typically relegated to confirmatory due diligence, considered in the final stages of the deal — after value and terms have been negotiated. This process gap can lead to value leakage for innovative companies of all stages and sizes.
Helping Organizations Realize IP Value
Aon’s Quality of Intellectual Property (QoIP) solution helps clients navigate IP-intensive investments and transactions with greater insight. QoIP delivers targeted analytics on the subject’s IP portfolio, compares it to a benchmark and describes its relationship to the enterprise and revenue streams. This IP intelligence enables our clients to make more informed decisions and realize better value, whether buying, building or selling investments.
QoIP Solutions Throughout the Investment Lifecycle
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Buy: Acquisitions or Investments
Inform Investment Decisions:
- Examine patents and coverage
- Benchmark patents versus competitors
- Identify key risks
- Recommend portfolio enhancements and risk management opportunities
Timing: Two weeks*
*Timing may be subject to change due to deal variables and other factors.
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Build: IP Strategy or Transaction Preparedness
Optimize IP Coverage and Quality:
- Identify IP investment opportunities
- Enhance IP landscape visibility
- Drive value-creation opportunities
- Build portfolio value during the holding period
Timing: Varies by scope
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Sell: Exits and Divestitures or Capital Raising
Enhance Value Realization:
- Catalog IP with precision
- Position IP with impact
- Benchmark IP versus competitors
- Tie IP to enterprise advantages
- Elevate IP positioning and data room content
Timing: Five to eight weeks*
*Timing may be subject to change due to deal variables and other factors.
90%
Today, 90 percent of the value of the S&P 500 is composed of intangible assets, including intellectual property.
Source: Ocean Tomo
High-Impact IP Intelligence
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Inventory
Catalogs the IP portfolio, including patents, trade secrets and know-how, software and data, trademarks and brand, and other core intangibles
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Quality
Assesses the quality of the IP relative to the business and highlights core technologies protected by the portfolio
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Benchmark
Produces a landscape of relevant IP assets and compares IP coverage and quality against competitor portfolios within core areas of subject matter
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Alignment
Identifies IP coverage of existing and potential future revenue streams; identifies competitive advantages enabled by the IPO
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Risk
Assesses landscape litigation activity and portfolio impairment risk
Deal Impact: Why Work with Us?
Aon's QoIP report delivers deep IP analytics in plain English. By addressing relevant questions about the subject's IP portfolio, the report enables buyers and sellers to develop comprehensive insights early in the deal process and make more informed decisions.
Team and Technology
Our QoIP team combines extensive merger and acquisition (M&A) and capital market transaction experience with deep IP and consulting know-how. We leverage Aon’s extensive resources — including our broader team of nearly 200 IP professionals and our proprietary IP Genome technology platform — to deliver unique IP analysis with an engagement model optimized for the client’s needs.
Innovative Solutions for Innovative Companies
Aon has mobilized capital, technology and insurance capacity to help unlock IP as an asset class, developing a robust and innovative IP-backed lending ecosystem. Using insights from this experience, we work collaboratively with QoIP clients to help them articulate the value and quality of their IP assets to help optimize deal outcomes across the M&A and capital markets.
How Aon Makes an Impact
IP has historically been underutilized, underappreciated and under-protected. In many transactions, it’s been relegated to confirmatory due diligence, considered in the final stages of the deal, which can lead to value leakage. By working with Aon and implementing QoIP, clients can now better position the full potential value of their IP assets and realize better returns.
200
We leverage Aon’s extensive resources — including our broader team of nearly 200 IP professionals and our proprietary IP Genome technology platform — to deliver unique IP analysis with an engagement model optimized for the client’s needs.
Similar to how the quality of earnings improves visibility into financial performance and cash flow, QoIP paints a game-changing picture of technology innovation and protection relative to traditional IP disclosure.
