Due diligence and economic assessments

Companies sometimes engage in extraordinary operations such as the opening of one or more branches, mergers, corporate restructuring, or the purchase and sale of industrial property rights. There are other moments in which a company may need to understand the value of its assets, for example for the determination of profits or losses. In all these cases, it is necessary to carry out due diligence and economic assessments of the assets of the company, including patents and other intellectual property rights. 

Patent due diligence includes a set of checks carried out on a patent portfolio in order to ensure that it is valid, properly held and in order, also highlighting any pledges, transfers of title or grants of licenses on the patent.

In conducting an economic assessment of a patent portfolio, Jacobacci & Partners is in a position to implement a multi-level analysis system that includes data related to the market and to the competition, in order to evaluate both the investments involved in the creation and maintenance of a patent portfolio, and to estimate the revenues that derive from it.

Conducting thorough due diligence and targeted economic assessments gives a clear picture of the state of a company's patent portfolio, and can help prevent pitfalls in the future. This is the best means for identifying any critical issues that could jeopardize the maintenance of a patent, the transfer of securities or use of the right by the purchaser and to draw up a budget to estimate future costs and revenues.

In transactions, not conducting due diligence can cause problems even before the negotiation process starts. Such problems include delays, additional costs, lower revenues or, in the event the lack of understanding of the IP portfolio involved leads to a violation of representation and warranties, even the cancellation of deals that have already been completed.