Throughout their careers, Avancept's consultants have conducted due diligence on IP Assets for
transactions amounting to nearly one billion dollars. For Purchasers, we know the questions to ask, and
more importantly, we know how to provide the results in a readily-accessible manner. For Sellers, we
know how to help them present their IP Assets in the best possible light and counsel them on what to say
about their IP Assets.
Purchaser's IP Due Diligence
We know that many buyers of technology businesses, especially financial investors, find it difficult to frame
the right questions for IP due diligence. At Avancept, we firmly believe that the purchaser should never
need to become an IP expert. Our job is to describe and characterize the IP Assets to you using
language that you can readily understand. More importantly, at Avancept, we link our IP expertise with
the client's commercial and business purposes. We do not expect our clients to form the diligence
questions for us.
The typical law firm in conducting due diligence makes little effort to provide a work product that looks
anything like that provided by the buyer's other analysts and experts. Law firms tend to provide only
qualitative results and qualitative results coached in highly caveated legal jargon. In the end, the
purchaser is left with a report that essentially requires him to hire another IP expert to explain it to him.
While this approach may serve the purposes of some buyers, it fails other buyers miserably, even when
the qualitative information is spot on and completely accurate.
At Avancept, we work with clients to make sure that we investigate the salient topics and ask the right
questions. We strive to match our investigation with your overall commercial goals and objectives for the
transaction. More importantly for most clients, we do not expect them to become experts in IP jargon –
we strive to translate our analysis into a commercially understandable format that is accessible to the
typical purchaser or investor. We also aim to keep our clients timely informed of our progress, and where
we find areas of concerns, report them to you early on, rather than bring them as a surprise at the end of
the diligence period.
We strive to provide purchasers with an IP diligence report that looks like the diligence information that
they receive from their experts in other fields. When the purchaser’s acquisition team is constructing an
analytical model of the potential acquisition, we make every effort to provide work product that can be
plugged into the purchaser's model.
Of course, we also provide purchasers with the qualitative information traditionally provided by law firms.
In our due diligence for technology companies, we tend to drill down on the IP Assets at the heart of the
deal rather than follow a checklist-driven approach that treats all possible IP Assets equally.
In addition to looking at the IP Assets central to the acquisition, we typically also look at the seller's
overall approach to IP issues, including aspects such as strategy, governance, and responses to third-
party risks. We can focus on any aspects of the seller’s IP Assets, as requested.
From the beginning, we work with the client to determine precisely the kind of results and guidance
needed. In all our work, but especially in our due diligence efforts, we strive to make sure that the client
fully understands up front what we will investigate and what we will not investigate. In addition to
investigating the target's IP, we also tend to look for potential third-party IP threats to the business
being acquired.
Contact Avancept for further details.
Seller's IP Due Diligence Support
Many technology companies find it difficult to maximize the value of their IP Assets during acquisition.
Similarly, many technology companies have trouble explaining the potential IP risks to their business in a
manner that satisfies the concerns of the potential buyer. Finally, technology companies often miss the
opportunity to expose their potential acquirers to all the company's IP Assets, thus excluding these
assets from the final price.
At Avancept, we know how to guide companies through the IP diligence process. We help sellers make
sure that their IP position is as strong as possible and that the story told about those IP Assets satisfies
all the buyer's concerns. We help sellers describe their IP Assets in the best possible light, and we help
sellers describe IP risks to the company in the most productive light so as to minimize the possible impacts
on sales price.
We know that the typical seller has more tasks to complete during an acquisition than time permits. Our
goal is to off-load IP-related tasks from the executive team. Among other things, we can help sellers
describe their IP Assets and develop appropriate IP brand imaging and related verbal attributes. We can
summarize your IP Assets in a concise and visually compelling manner and develop a related description
that can be delivered by your executives to prospective purchasers and others. We can counsel your
executives on what to say and how to respond to questions.
We prefer to begin our work well in advance of the buyer's own IP diligence, but we can join the process
at any time. We work with sellers to help them identify all the salient IP Assets and help them describe
any IP risks to the business in a commercially sensible manner. We strive to make sure that our clients
will have something sensible to say on every IP topic pertinent to the company's business.
Finally, we also help sellers cope with the "gotchas" that often arise in the due diligence phase. These
shocks tend to happen when the buyer's counsel has found an apparent weakness in the seller's IP
Assets, or when the buyer's counsel has found a potential IP threat to the company's business, or when a
third party decides to leverage the value of its own IP Assets by asserting them against the seller during
the due diligence period. We prepare our clients for all these contingencies, and we help steer our client's
responses to minimize the impact of such surprises.
Contact Avancept for further details.












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