Maximizing the Value of IP Assets in a Distressed Situation
by: Mark F. Thomann*
Development Specialists Inc.;
Chicago
Since companies are increasingly finding themselves in distressed situations, here is a simple opportunity to act upon that often yields significant dividends: Invest in understanding intellectual property (IP). The IP of an entity needs to be understood as an important value driver for its business and a potent vehicle to increasing potential recovery. Understanding the underlying value of patents and trademarks in a distressed situation also helps guard against being criticized in the role as a fiduciary and/or advisor. Accordingly, sellers need to invest in understanding the IP assets that they are trying to optimize—even if the answers to a quick review point toward minimal residual value. The cost and benefit of being informed outweighs lost opportunities and potential liabilities arising from not understanding what exactly you have to work with.