Scroll down to reach links to other pages

Valuation of Technology and Other Assets

© 1998, Andover Technology Partners

Valuation of Intellectual Property (IP) Assets

This includes the valuation of intellectual property (IP) and structuring/negotiation of technology license agreements and/or IP acquisitions on behalf of a client who may be selling or, alternatively, purchasing the assets or rights to the assets.

When appropriate, we work with the client and their patent counsel to establish an IP strategy that meets their business objectives. The objective of the client is typically to either sell the IP asset or rights to it or to purchase the IP asset or rights. Our role is to help establish the proper price and, when appropriate, establish a viable strategy for maximizing the value.

Due diligence on technology company acquisitions

This is an area where there seems to be some increasing interest on the part of some of our clients. It is a natural extension of what is described above for businesses whose value is largely related to IP. We help evaluate the value of the technology, the strength of the management team and the robustness of the market. There is a lot of similarity with what is done in valuing intellectual property assets, except in this case we also evaluate the management team.

Economic evaluation of capital projects -

This involves comprehensive capital budgeting and discounted cash flow analysis for various capital projects - most of this work has been to evaluate alternative strategies for air pollution control for some clients such as electric utilities and the EPA. We consider strategies including capital investments, participation in emission-allowance markets, and mixes of the two to achieve the client’s desired risk profile. This methodology may include Value at Risk (VAR) methods – typically using Monte Carlo simulation. This has been a significant area for us, and with energy industry deregulation it should get bigger. The analysis will often consider various financing options (i.e. mixes of debt and equity, and leasing options) as well as market-based approaches for meeting the objective. We expect to expand this effort to advise on acquisition or construction of other large, fixed assets such as power plants and the like.

Real Option Analysis is also used to evaluate capital projects that have an option component to them. This is particularly true on generation assets that offer the ability to expand capacity or use alternative approaches to environmental compliance. Real Option Analysis can be used to assess the value of waiting to "see what happens" in a way that discounted cash flow analysis will not capture.

Go to: Home Page | Table of Contents | Management Consulting