Buyers often fail to consider the financial impact of intellectual property rights in M&A deals. While IP value can be difficult to determine, a target company's financials may rely on IP.
The Financial Impact Of IP Issues in M&A
Buyers often fail to consider the financial impact of intellectual property rights in M&A deals. While IP value can be difficult to determine, a target company's financials may rely on IP. For example, a company's financial outlook may be due to patent protection that provides exclusivity and prevents competitors from entering certain markets. It also may be due to goodwill associated with trademark protection, allowing a brand to charge a profitable premium over the competition.
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