The importance of IP due diligence

In a technology-oriented economy, IP assets have become a significant driver for business growth. It is therefore crucial for investors to fully understand the intellectual property of their target companies.

While the number of company transactions with substantial IP portfolios is steadily growing, investors are still underestimating the importance of a structured screening of companies’ IP assets.

Insufficient IP due diligence can lead to overvaluation of target companies, exposure to unknown risks associated with these IP portfolios or integration issues that might diminish synergy effects.

Get answers on the most common IP due diligence questions

• Does the target company own all relevant patents?
• Does the target company have a competitive advantage due to its patents?
• Are there any potential IP risks such as patent cliffs involved?
• Can the patents of the target company be potentially infringed?
• Have the patent maintenance fees been paid?
• What is the remaining lifetime of the patents?