Due Diligence

In many transactions, intellectual property is critically important; even if it is not driving the deal, it affects price. Most organizations do not have a concise, accurate description of their intellectual property (patents, applications, trademarks, copyrights, trade secrets, etc.). Businesses are often unaware that the technology that they rely on may not be used because they have a license that terminates when the organization is sold. Potential sellers should prepare their portfolio of intellectual property to make due diligence easier on the buyer; it increases the price the buyer will be willing to pay and increases credibility. Likewise, buyers can do a lot with public records — before they approach a potential target — to learn the status of the target’s intellectual property. This can significantly reduce the uncertainty and the cost of the transaction.

Arnold & Knobloch has been representing buyers and sellers for decades. Contact us now to learn what we can do to optimize transactions for your organization.