2. Why is this an agenda item?
• approaches to corporate valuation are changing
• the global economy demands tight fiscal
discipline
• capital is king
and consider these questions
3. What’s keeping the Board awake?
Some thoughts ... feel free to add more
• we need to cut costs
• our valuation doesn’t reflect what a valuable
business we are
• we can’t raise capital, the Bank won’t listen
• can we do any more on tax?
• our pension scheme is soaking up our
investment capital
4. A working proposition
“The majority of global/regional businesses who
create/innovate are missing out on IP related
opportunities”
• what are these?
5. Driving corporate value
secrets
brands
intangible intangible
know how
patents
customers
tangible
tangible tangible
1980s 2010 2020?
Time
Relevance: M&A
PE transaction
IPO
7. Looking at all the angles
litigate to generate
revenue Non Core out licence/sell
Core litigate to preserve
margins
8. Tax opportunities
A - UK R&D Tax Credit
SME Large Companies
Credit 225% of qualifying 130% of qualifying
expenditure expenditure
B - IP Holding Co
royalty
IP Co Group
IP licence
9. Security and securitisation
• IP as an asset to lend against
• securitising IP driven revenues streams if those
revenue streams are:
– long term
– “solid”
The music and pharmaceutical industry have used
this route but the mechanism is generic
10. Managing pension scheme shortfalls
Scheme Company
SPV
• In broad terms:
– the Company transfers the asset and pays an ongoing
royalty
– SPV licences use
– the Scheme is “closer” to a realisable asset should the
worst happen, which can lead to a more relaxed
financing plan for the scheme deficit
.....valuation is key.....
11. Effective monetisation depends on...
Identification
Thought
Management
Exploitation
A governance led process for the Group
12. Still awake?
Cutting cost Portfolio review, realise annual savings
Feeling undervalued? Defend value with evidence of IP assets
to bolster vanilla valuation
Raising capital Consider IP as security, IP programmes
for non core IP and securitisation
What about the tax? Use the tax credit system and think
about tax efficient IP holding companies
Pension deficits Consider the Tui route using IP
