Session on Co-Founder conflict cases or challenges that startups with multiple co-founders face during different stages of their company ( before and after fund-raising) - How do the founders ideally plan for these, and if not planned, how does one find solutions to resolve them when they encounter such challenges.
Start ups challenges for funding optionsAnjana Vivek
How do you choose from this range of investors and more: HNIs, informal and formal Angel groups,Seed Funds,Venture Capital, Private Equity, Banks, Strategic Investors, Corporate Funds; (Family) Business Groups, Indian & Global, Government supported funds, Impact Investors, Incubators, Accelerators, Crowd funding, Online funding platforms
VC, PE, Angel, HNI, Seed Investor, Incubator, Accelerator, Corporate Investor, Strategic Investors, 3 Fs .. how do you distinguish between them? What is the homework you need to do before you approach an investor? How will you stand out from the clutter and demonstrate you can create value? How will you crack the exam of getting investors into the company, assuming you have a great idea, product, service or solution?Should you think of Plan B? Should you revisit your Business Model?
Envisage. Stratigize. Execute: IDEA to BUSINESSAnjana Vivek
Coming up with a brilliant idea for your venture is just the beginning, taking it forward is where many people flounder. Session at Eximius, the Entrepreneur Summit at IIMB on how to go about implementing your idea.
Icai national seminar m&a-deal valuationAnjana Vivek
Some pointers on Deal Valuation which is beyond numbers, including some questions 'to trigger thinking' related to valuation from a buyer/seller perspective
Microsoft Ventures Masterclass - Business models growth and value creationAnjana Vivek
A framework and process to analyse your business and help you take it to the next level. Topics: Business Models – A Brief Introduction; Stock Take – At the Start; Growth: Sales and Beyond Sales; Valuation and Value Creation; Other Aspects beyond numbers
Session on Co-Founder conflict cases or challenges that startups with multiple co-founders face during different stages of their company ( before and after fund-raising) - How do the founders ideally plan for these, and if not planned, how does one find solutions to resolve them when they encounter such challenges.
Start ups challenges for funding optionsAnjana Vivek
How do you choose from this range of investors and more: HNIs, informal and formal Angel groups,Seed Funds,Venture Capital, Private Equity, Banks, Strategic Investors, Corporate Funds; (Family) Business Groups, Indian & Global, Government supported funds, Impact Investors, Incubators, Accelerators, Crowd funding, Online funding platforms
VC, PE, Angel, HNI, Seed Investor, Incubator, Accelerator, Corporate Investor, Strategic Investors, 3 Fs .. how do you distinguish between them? What is the homework you need to do before you approach an investor? How will you stand out from the clutter and demonstrate you can create value? How will you crack the exam of getting investors into the company, assuming you have a great idea, product, service or solution?Should you think of Plan B? Should you revisit your Business Model?
Envisage. Stratigize. Execute: IDEA to BUSINESSAnjana Vivek
Coming up with a brilliant idea for your venture is just the beginning, taking it forward is where many people flounder. Session at Eximius, the Entrepreneur Summit at IIMB on how to go about implementing your idea.
Icai national seminar m&a-deal valuationAnjana Vivek
Some pointers on Deal Valuation which is beyond numbers, including some questions 'to trigger thinking' related to valuation from a buyer/seller perspective
Microsoft Ventures Masterclass - Business models growth and value creationAnjana Vivek
A framework and process to analyse your business and help you take it to the next level. Topics: Business Models – A Brief Introduction; Stock Take – At the Start; Growth: Sales and Beyond Sales; Valuation and Value Creation; Other Aspects beyond numbers
The science and art of Startup ValuationsAnjana Vivek
Insights on Valuation and Negotiations… OR … how Can You can get a better price. ..whether for M&A or VC or strategic investment. Valuation is Subjective and Objective; there is a math to valuation, there are Business models which are captured in financial models and spread sheets. There is scenario analysis and sensitivity analysis. There are premiums and discounts assigned to multiple factors. This objective math is impacted by subjectivity of the person(s) doing the calculation, for example, if you are an unlisted company, is the discount factor 50% or 80% or somewhere in-between? This presentation sets out the methods and process of valuation with a few specific examples on valuations for different cases, including mentoring, acceleration, investment and more.
Finance nuances for a scaling venture - SAYesAnjana Vivek
Session on finance for 25 young entrepreneurs @ the South Asian Young Entrepreneurs Summit (SAYes) organised by The US Consulate General Chennai and The Indus Entrepreneurs (TiE) Bangalore Chapter
One slide checklist of investors and enablersAnjana Vivek
Which investor is right for you? This sets out types/categories of investors and a brief set of questions you need to ask yourself before setting out your funding strategy.
Proprietorship, Private Ltd. LLP or Partnership..?? Anjana Vivek
Multiple options are there starting a venture, for example: Sole Proprietorship, Partnership, Limited Liability Partnership (LLP ), One Person Company (OPC), Private Limited etc. What is the right one for you? Here are some tips to help you decide on what may suit you.
There is more to managing the financial health of your emerging start-up than raising money and selling out. The day-to-day financials matter, as they impact every other area of your business. Diagnosing your “full” costs, including those to acquire and serve customers, understanding different elements of cost. How your business model impacts your financial model and impacts value creation. It helps to institute the right procedures that will help keep things in check, and give you the visibility into key metrics so you can effectively monitor your progress.How do you read the numbers, the small data, not just the big data? How does value get created and what is valuation? Lack of knowledge may lead you to venture failure. The presentation at the IIMB/NSRCEL session for entrepreneurs and wanna be entrepreneurs is attached here touching on some of these aspects and more... Happy Reading
Leading in Changing Times: YourSelf and Your BusinessAnjana Vivek
We operate in a volatile and uncertain environment, across geographies, across industries. How can you StandOut from the Clutter and be visible as a leader?
How to re-imagine and rethink business in a post Covid-19 world. Leading through building resilience in self and business and shining light in a new world business environment.
Knowledge Session on Startup Valuation: How does a Startup approach valuations? Best Practices, Models, Examples of good and bad valuations, etc. ELEVATE 100, an initiative of the Department of Information Technology and Biotechnology, Government of Karnataka aims to provide a comprehensive entrepreneurship platform for startups. The top 100 technology based startups chosen through a rigorous hunt across Karnataka State will tap into a whopping sum of Rs.400 Cr of Government funds. This is the largest pool of funds ever offered by any State Government to Startups.
A presentation by Andreas Schulze of Marsa Corporate finance to the DayOne Accelerator discussing valuation of early stage companies.
If you would like a copy for download, please contact andreas.schulze@marsaco.com
Training FUTURUM : Forecasting and Valuation (Case Study), Jakartamputrawal
Training FUTURUM : Forecasting and Valuation (Case Study)
Venue : Hotel di daerah Jakarta Pusat
Keterangan lebih lanjut hubungi :
Muhammad Putrawal, email : futurumcorfinan@gmail.com
Note :
Presentation slides will be distributed in softcopy
Minimum participants = 10 persons
After the training, participants can still discuss about the training materials via email
The science and art of Startup ValuationsAnjana Vivek
Insights on Valuation and Negotiations… OR … how Can You can get a better price. ..whether for M&A or VC or strategic investment. Valuation is Subjective and Objective; there is a math to valuation, there are Business models which are captured in financial models and spread sheets. There is scenario analysis and sensitivity analysis. There are premiums and discounts assigned to multiple factors. This objective math is impacted by subjectivity of the person(s) doing the calculation, for example, if you are an unlisted company, is the discount factor 50% or 80% or somewhere in-between? This presentation sets out the methods and process of valuation with a few specific examples on valuations for different cases, including mentoring, acceleration, investment and more.
Finance nuances for a scaling venture - SAYesAnjana Vivek
Session on finance for 25 young entrepreneurs @ the South Asian Young Entrepreneurs Summit (SAYes) organised by The US Consulate General Chennai and The Indus Entrepreneurs (TiE) Bangalore Chapter
One slide checklist of investors and enablersAnjana Vivek
Which investor is right for you? This sets out types/categories of investors and a brief set of questions you need to ask yourself before setting out your funding strategy.
Proprietorship, Private Ltd. LLP or Partnership..?? Anjana Vivek
Multiple options are there starting a venture, for example: Sole Proprietorship, Partnership, Limited Liability Partnership (LLP ), One Person Company (OPC), Private Limited etc. What is the right one for you? Here are some tips to help you decide on what may suit you.
There is more to managing the financial health of your emerging start-up than raising money and selling out. The day-to-day financials matter, as they impact every other area of your business. Diagnosing your “full” costs, including those to acquire and serve customers, understanding different elements of cost. How your business model impacts your financial model and impacts value creation. It helps to institute the right procedures that will help keep things in check, and give you the visibility into key metrics so you can effectively monitor your progress.How do you read the numbers, the small data, not just the big data? How does value get created and what is valuation? Lack of knowledge may lead you to venture failure. The presentation at the IIMB/NSRCEL session for entrepreneurs and wanna be entrepreneurs is attached here touching on some of these aspects and more... Happy Reading
Leading in Changing Times: YourSelf and Your BusinessAnjana Vivek
We operate in a volatile and uncertain environment, across geographies, across industries. How can you StandOut from the Clutter and be visible as a leader?
How to re-imagine and rethink business in a post Covid-19 world. Leading through building resilience in self and business and shining light in a new world business environment.
Knowledge Session on Startup Valuation: How does a Startup approach valuations? Best Practices, Models, Examples of good and bad valuations, etc. ELEVATE 100, an initiative of the Department of Information Technology and Biotechnology, Government of Karnataka aims to provide a comprehensive entrepreneurship platform for startups. The top 100 technology based startups chosen through a rigorous hunt across Karnataka State will tap into a whopping sum of Rs.400 Cr of Government funds. This is the largest pool of funds ever offered by any State Government to Startups.
A presentation by Andreas Schulze of Marsa Corporate finance to the DayOne Accelerator discussing valuation of early stage companies.
If you would like a copy for download, please contact andreas.schulze@marsaco.com
Training FUTURUM : Forecasting and Valuation (Case Study), Jakartamputrawal
Training FUTURUM : Forecasting and Valuation (Case Study)
Venue : Hotel di daerah Jakarta Pusat
Keterangan lebih lanjut hubungi :
Muhammad Putrawal, email : futurumcorfinan@gmail.com
Note :
Presentation slides will be distributed in softcopy
Minimum participants = 10 persons
After the training, participants can still discuss about the training materials via email
Public Transportation is termed as providing regular and continuous conveyance to the people in the society. The primary mode of transportation in Indian is road. Nearly 80% of the people in Indian are depend on road ways. The State Government is the primary stakeholder in road Transportation Corporation. The fundamental objective of any RTC is to provide high quality service at economical rates. But most of RTC’s are collecting high fares and providing low quality service. In India 72 million people are travelling in road ways for their day today life. Even though there is a large scope of profits because of the demand, most of the state RTC’s are in losses. The losses are mainly because of unscientific resource allocation and huge investment.
Congresso Sociedade Brasileira de Computação CSBC2016 Porto Alegre (Brazil)
Workshop on Cloud Networks & Cloudscape Brazil
Philippe O.A. Navaux, Professor at the Federal University of Rio Grande do Sul and Computer Science Area Representative at CAPES, Brazil
Collaborative Research in Cloud Computing: future and challenges
My thesis aimed to find an association between older adults' fruit & vegetable consumption and their farmers' market shopping by studying seniors in Lexington, KY and Taipei City, Taiwan.
A manager believed that Chiboodle should add salads to its menu based on a current survey. The project was called "Project Crunch." This case study aimed to present to CEO recommendations based on the revenue forecast, if Project Crunch were implemented.
Generational Retirement Trends Study - 2015T. Rowe Price
T. Rowe Price's recent Retirement Saving & Spending Study revealed that across groups of 401(k) savers, millennials are following better financial habits than those of baby boomers.
“We think it’s encouraging that millennials are so receptive to saving for retirement and that they are generally practicing good financial habits,” says Anne Coveney, senior manager of Retirement Thought Leadership at T. Rowe Price who led this research study. “When they have the means to do the right thing, it appears that they often do.’
Throughout this presentation, we uncover how different generational workers are saving and spending, and indentify the statistics that differentiate these populations.
This presentation was prepared for the 2010 Australian Innovation festival by Mission HQ. It provides a framework that we utilise in consulting engagements for the valuation of technology based intellectual property.
CH2M Hill's Mark Alpert presents on team structures for design-build and integrated project delivery methods at the 2013 DBIA Water and Wastewater Conference.
This course will take you through the process of a typical business valuation engagement, from scoping the work to ultimately arriving at a conclusion of value. Through a case study, we will address fundamental issues including valuation approaches (asset, income and market), normalizing analysis and valuation discounts.
Innovation case study submitted by Dubai First during 3rd Continual Improvement & Innovation Symposium organized by Dubai Quality Group's Continual Improvement Subgroup to celebrate World Quality Day 2011.
In this advanced business analysis training session, you will learn Requirement Management. Topics covered in this session are:
• Requirements Negotiation And Prioritization
• Requirements Management
• Requirements Traceability
• Requirements Variability and Software/System Product Lines
For more information, click here: https://www.mindsmapped.com/courses/business-analysis/advanced-business-analyst-training/
Before going to market to sell your business, you or your executive team may want to obtain an independent appraisal. Likewise, prospective buyers may wish to obtain expert services to value an acquisition target or discrete portions of a target. This webinar provides a look into how valuation experts place a value on a going concern.
Part of the webinar series: Valuation 2021
Building a BI project is an important step in Business Intelligence gathering. This is a small introduction to its basic method and steps to be followed to build a BI project. Please comment on whether the slides were useful or not!
The Science and Art of Startup Valuations - Anjana VivekTiE Bangalore
TiE Masterclass: Valuation for Startups
This 3 part workshop conducted by Anjana Vivek, Founder Director of Venture Bean Consulting, Parag Dhol, MD, Inventus Capital Partners & Pavan Sondur, CEO & Cofounder, UNBXD
Measuring outcomes of brand equity
Content Extracted from “Strategic Brand Management” 3rd Edition
Authors: Kevin Lane Keller
M.G. Parameswaran
Issac Jacob
Presentation developed from SLIM Diploma In Brand Management Students
Presentation developed by Leroy J. Ebert (25th April 2014)
Minder why invest in a customer innovation presentationInnovation Minder
The explanation, about why to invest in a customer innovation management platform is explained in this video, where we show that crowdsourcing tools are the solution for companies to innovate with their customers. And that the investment in this kind of platform is worth it, compared to the engaged cost and risks!!!
Why to invest in Customer Innovation Management platforms? http://t.co/chGddXGJ & http://t.co/DCAdmO8Y
With more than $18 billion in M&A activity in the first half of last year alone, the colocation industry is riding the bubble of rapid growth. Colocation data center providers are being evaluated by a wide range of investors, with varying experience and perspectives. Understanding the evaluation criteria is a critical competency for attracting the right type of investor and financial commitment for your colocation business and this is why we have invited today’s speaker to present.
Steve Wallage Steve Wallage is Managing Director of BroadGroup Consulting. Steve brings 25 years of industry experience, holding senior roles at Gartner Group, IDC, CGI and IBM before joining BroadGroup 10 years ago. In his responsibilities at BroadGroup Steve has led many due diligence projects for investors evaluating colocation companies.
Preparing Your Portfolio for Prime Time: IP Due DiligenceMintz Levin
Due diligence helps potential investors know they are making a winning bet on your startup. Hence, investors conduct a detailed look “under the hood” of the company and the company’s IP is at center stage.
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
Lecture slide titled Fraud Risk Mitigation, Webinar Lecture Delivered at the Society for West African Internal Audit Practitioners (SWAIAP) on Wednesday, November 8, 2023.
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
Abhay Bhutada Leads Poonawalla Fincorp To Record Low NPA And Unprecedented Gr...Vighnesh Shashtri
Under the leadership of Abhay Bhutada, Poonawalla Fincorp has achieved record-low Non-Performing Assets (NPA) and witnessed unprecedented growth. Bhutada's strategic vision and effective management have significantly enhanced the company's financial health, showcasing a robust performance in the financial sector. This achievement underscores the company's resilience and ability to thrive in a competitive market, setting a new benchmark for operational excellence in the industry.
where can I find a legit pi merchant onlineDOT TECH
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the telegram contact of my personal pi merchant to trade with
@Pi_vendor_247
2. Elemental Economics - Mineral demand.pdfNeal Brewster
After this second you should be able to: Explain the main determinants of demand for any mineral product, and their relative importance; recognise and explain how demand for any product is likely to change with economic activity; recognise and explain the roles of technology and relative prices in influencing demand; be able to explain the differences between the rates of growth of demand for different products.
1. Elemental Economics - Introduction to mining.pdfNeal Brewster
After this first you should: Understand the nature of mining; have an awareness of the industry’s boundaries, corporate structure and size; appreciation the complex motivations and objectives of the industries’ various participants; know how mineral reserves are defined and estimated, and how they evolve over time.
2. Agenda
Background
Valuation methods
Practical perspectives: In pricing
Cases for discussion
Summary
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3. Intellectual Property
• Intellectual property has many forms,
visible and invisible…
– Patents
– Trademarks
– Industrial designs
– Service marks and commercial names
– Copyright
– Formulae
– Knowledge (people)
….and so much more
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4. Why Value
When do you think IP is to be valued?
VentureBean Consulting Private Limited 4
5. Why Value
To
• Purchase
• Sell
• Plan for the future
• Report
• Evaluate value of work in progress
• Take decisions
VentureBean Consulting Private Limited 5
6. Agenda
Background
Valuation methods
Practical perspectives: In pricing
Cases for discussion
Summary
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7. Valuation methods
These can be broadly classified into:
• Cost based
• Income based
• Market based
• Special: qualitative based; other
• Contingent claim (options)
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8. Valuation methods
• Different experts have different classifications
of the various methods of valuation
• Within these methods, there are sub-methods
• Sometimes the methods overlap
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9. Valuation process
• Review and selection of the method(s) of
valuation
• Understanding of issues which impact valuation
• Special situations and their impact on valuation
VentureBean Consulting Private Limited 9
10. IP value
The value of the IP is from
• Economic benefit provided
• Specific to business or usage
• Has different aspects
– Accounting (book-linked) value
– Economic (market-linked) value
– Technical/Scientific (R&D-linked)value
– Strategic (usefulness /specific purpose)
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11. IP value
Depends on objective and can vary widely
depending on purpose
• For decision making
• For accounting purposes – to show in
financial statements and reports to
management
• For reporting, internal/external
• For taxation purposes
• For sale/purchase
• For acquisition/merger
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12. Valuation - Cost
Historical cost
• Costs associated can be identified with the IP
– direct, indirect; material, labour, expenses
• Subjectivity is however there in some areas
– Period for which costs should be accounted
– Which costs are to be included, which to be
excluded, some costs are incurred for multiple IPs
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13. Valuation - Cost
Replacement cost
• Assign costs for different characteristics, eg.
for a geography, exclusivity, automatic
upgrades etc.
• Decisions on whether IP can be replaced
• Comparable purchase cost may be taken as
a benchmark
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14. Valuation - Cost
Challenges and Issues
• Difficult to estimate at times
– How does one unbundle IP and non-IP costs
– Allocation of direct and indirect costs
– All costs may not be captured as books of account
typically capture costs relate
• Some costs may have build over many
years.. Eg. Brands in existence for decades..
• Cost may not be indicative of income
potential
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15. Valuation – Market price
• Linked to deals and transactions in market-
place in recent times
• Sometimes this may be based on multiples
like M&A enterprise valuation
• May involve comparing of IP assets and deals
involved
• May involve reviewing royalty and licence
terms
• Need to understand features of IP, including
territorial rights, exclusivity, time horizon,
product features made available etc.
VentureBean Consulting Private Limited 15
16. Valuation – Market price
Challenges and Issues
• Market price of a deal may not necessarily be
indicative of value specific to current
requirement; for eg. the deal value may have
may have depended on some strategic
rationale
• How do you get transactions where you can
understand the market price (eg. Used cars
have a market price, but IP may not)
VentureBean Consulting Private Limited 16
17. Valuation – Income based
• Discounted cash flow is popular
• Difficulty is in separating the income
associated with the IP alone
• Based on future expectations (synergies
/costs saved in M&A)
VentureBean Consulting Private Limited 17
18. Valuation – Income based
Challenges and Issues
• Discounts and multiples are difficult to
estimate
• Depends on scenarios projected, subjective
elements are involved
• May depend on business models which could
be difficult to think through in sufficient detail
in advance
VentureBean Consulting Private Limited 18
19. Valuation – Qualitative
• Linked to key value drivers that are identified
• May be based on a scoring system, i.e for
brand value etc. Various parameters are
scored and used to determine possible value
• PhD’s in a bio-tech firm taken as an indicator
of value
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20. Valuation – Qualitative
Challenges and Issues
• Identification of key value drivers
• Value drivers may be only a partially
indicative of value
• May be subjectivity in scoring, depending on
who is doing this, whether an analyst or a
technical expert etc..
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21. Valuation: relief from payment
• Assumes that if IP ownership was with
another company, royalty would have to be
paid for usage of IP
• Value is capitalised value of relief to company
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22. Valuation: relief from payment
Challenges and Issues
• Difficulties in identification of specific IP
benefit
• Some IPs may not be available readily in
market, to get a payment estimate
• Subjectivity regarding usage and usage terms
and conditions, as some payments are
specific to a case
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23. Option
• Gives owner right (not obligation)
– to buy or sell asset
– at a predetermined price, the exercise price or the
strike price
– at or before the expiration of the option
• Right to buy – call option (bc)
Right to sell – put option (ps)
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24. Option
• Asset pays off only under certain
contingencies:
– for a call option: if value of underlying asset
exceeds pre-specified value
– for a put option: if value of underlying asset is is
less than pre-specified value
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25. Option
• Can be valued as a function of the following
– Current value
– Variance in value of underlying asset
– Strike price
– Time to expiration of option
– Riskless interest rate
VentureBean Consulting Private Limited 25
26. Option: Applicability
• Contingent value rights providing protection to
stockholders in companies against stock price
declines - options
• Convertible debt - long term call options
• Patent can also be analysed as options on
product - initial outlay considered as the strike
price and the patent life may be likened to time
of expiration of option
• Abandonment of projects - options
Flexibility also has a value -
which is captured in the options model
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27. Options
Challenges and Issues
• Assumption on variance are difficult to defend
when options have long lifetimes
• Value of underlying asset if not traded may be
difficult to estimate
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28. Agenda
Background
Valuation methods
Practical perspectives: In pricing
Cases for discussion
Summary
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29. IP value drivers
• Competence of team i.e.
– skill sets
– experience
– educational qualifications, institutes attended
• Projects in pipeline
• Nature of projects – i.e. quality of work done, not
just quantity
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30. IP value drivers
• Growth in clients/associates due to core IP,
indirectly measuring impact of IP
• Additional efforts required in terms of time, cost
etc
• Period for which benefit can be available
• Risks associated
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31. IP value capture
• Sometimes, the IP value is not separately
calculated and is instead indirectly factored in
the business, i.e.
– In overall cash flow
– In revenue
– In profits
– As higher multiples compared to other companies
without this IP
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32. IP Licensing *
• Intellectual property – ie valuable intellectual
property must be owned by one party
• A license is a consent by the owner of the IP
to allow the use of the IP in exchange for
something in cash or kind
• Licenses can have different rights, ie to use,
to sell products based on a technology etc.
* Source: Successful Technology Licensing: IP Asset
Management Series, World Intellectual Property
Organization
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33. IP Licensing
• There is a business relationship in which
multiple agreements may be involved
• An agreement is to be reached on multiple
parameters
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34. Key items
• Subject matter
– Product, software programme, formulation,
document, set of diagrams etc.
– Sometimes there is a lack of clarity
– It is important to understand and define what
technology is, what the IP is and what is proposed to
be licenced
VentureBean Consulting Private Limited 34
35. Key items
• Is item being licensed, completed?
– Questions are to be raised re stage of development of
IP, ie whether software has been completely written,
whether additional customisation is required, whether a
technique has been completely developed etc
– If more work is required, it is to be determined whether
the technology is usable in the incomplete form, what
additional work is required, what tests need to be
passed etc.
– Based on this, the value will be debated upon and the
price for transfer will be negotiated
VentureBean Consulting Private Limited 35
36. Key items
• Who owns IP
– Is the licensor the owner
– The agreement should specify ownership,
particularly in joint venture situations. In such
cases, different nationalities may also be involved
• Can the technology be seen in advance
– Non disclosure agreements may be signed in such
cases, including place for settlement of disputes, if
any
– Information sharing and practical reality are to be
balanced
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37. Key items
• Specific rights
– What are the rights being transferred
– What is not available
– Is what is offered, sufficient for the purpose for
which it is obtained
– Are any additional rights required for your business
– What else is relevant to usage of the IP, such as
training, knowledge of updates and changes, major
findings post agreement which will impact IP etc.
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38. Key items
• What is the territory of rights
– Is this worldwide or limited to country, region
– Can it be distributed on the internet, in digital form
– Is there exclusivity
• To limit exclusivity, one may limit to dependency on
minimum royalty
• Exclusivity time and term of agreement need not be same
• This may be limited to some technologies, ie “field of use”
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39. Key items
• Value and pricing
– Depend on nature of license, whether to
manufacture, market, purchase, joint venture etc
– From licensee perspective, affordability, other
costs, price to be charged for product and market
assessment play a key role
– From Licensor perspective, amount that will give
return on investment in R&D to be carefully
computed and understood
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40. Key items
• Value and pricing
– Valuation methods are used to assist licensor and
licensee in making judgements on pricing
– Several methods exist, but they are subjective and may
sometimes be combined
– Three classic methods are cost based, income based
(most charge between 0.5% to 5% of revenues – thumb
rule, not to be considered rigidly)
– Comparables method, can be particularly difficult to
compare IP & technologies, but can be attempted)
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41. Key items
• Payment method and terms
– Royalties and lump sum payments or a
combination of the two are commonly used
– May be on gross or net revenues, good to get into
details
– Licensee may want a cap on the royalty, but
licensor may not appreciate this
– Licensor may want a cap on the royalty, but
Licensee may not appreciate this
– Lump sum payments may be treated as advance
payments or part advance payments
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42. Key items
• Terms may include performance warranties,
indemnities, representations
• May impact final price of products
• Future products and versions are to be
considered
• Other terms include documentation, consulting,
training etc, which form a key part of the IP
transfer/use
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43. Agenda
Background
Valuation methods
Practical perspectives: In pricing
Cases for discussion
Summary
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44. CASES: Case discussion methodology
• Individual thinking – 3-5 minutes
– ( no discussions at this point .. No outsourcing your
thinking … )
• Group discussion – 10-15 minutes
– Must have a consensus on key points; the team view is
to be arrived at.. Not the individual view
• Joint case discussion with all groups, lead by
faculty (30-45 minutes; can go on for more
depending on depth of detailing and learning
required from session)
• Summarising of learnings from case and linking it
to points made in session and additional points
VentureBean Consulting Private Limited 44
45. Case 1
• Your company in India has generated patents which
are being used in product development in one
country
• Your markets are global, current customers of the
product are in three countries
• You are in turn paying a fee to the parent company
for use of certain software products, for which
purchase is made centrally at the head office
overseas.
Q. How will you look at the value of the IP generated in
your company
Q. What are the various other issues that you would
need to factor in, in addition to valuation?
VentureBean Consulting Private Limited 45
46. Case 2
• A University has developed a technique that they
have patented
• They are considering creating a new start-up
company, to which the patent can be transferred
for commercilization
• They want the inventors and the University to
benefit from this
Q. If you are an advisor to the University, what are
the issues you will need to consider?
Q. What process will you ask the University to
follow?
VentureBean Consulting Private Limited 46
47. Case 3
• A company has developed a set of software
products
• The founders of the company do not see eye-to-
eye in future growth plans of the business
• They decide to take legal steps to split the
company into two, with the existing two Directors,
each taking one unit
• The product lines are then split into the two
companies
Q. How will you look at the value of the IP
generated
Q. How will the value of the two companies factor
this
VentureBean Consulting Private Limited 47
48. Agenda
Background
Valuation methods
Practical perspectives: In pricing
Cases for discussion
Summary
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49. In summary
• Understand the need/benefit/rational for
calculation of the IP
• Apply the different methods of valuation, i.e.
income, cost, transaction etc.
• Factor in the legal, accounting, tax and any
other matters while arriving at a value range
• For the negotiations, articulate various
elements such as IP ownership, royalty,
license fee, equity/debt mix, costs, billings,
payouts, earnings etc. and factor these in
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50. APPENDIX:Net present value
t n
CFt
Value t
t 1 (1 r )
CFn is indicative of earning at a point in time
r is the discount rate
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51. APPENDIX:CAPM
CAPM model is widely used to calculate cost of
equity capital
• Cost of equity =
Risk free rate + the risk of the company (beta) x
the market risk premium
• Market risk premium =
Market rate – risk free rate
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52. Our professional approach is unique
VentureBean adds value to clients through…
Expertise
• Strategic and transformation capability - combined with expertise in
operational implementation
• Knowledge of local business conditions - combined with global best
practices
• Structured approach - ex 6 Sigma and Lean methodologies
Working style
• Entrepreneurship and Independence in working style – across levels in the
organization
• Change management is an important part of the work – we work together
with the client
Business Setup
• Team scalability – expertise across business functions
• Innovative business models / frameworks
…across multiple industry verticals
Consumer / Retail IT/IT enabled Travel &
Banking / Finance Manufacturing Education Healthcare
/ Food services Transportation
VentureBean Consulting Private Limited 52
53. Our expertise within various areas…..
Cross Planning, Change •Strategies for business growth
•Governance
functional Management, •Change Management
•Project and Program Management
expertise Integration •Business and operational Due Diligence
•Channel strategies
Sales and marketing •Product portfolio Management, and Product Extension
effectiveness •Value Chain Mapping
•Customer analysis, segmentation and loyalty programs
•Lean process engineering methods
Operation •Gap-analysis
•Customer focused processes
Organizational •Performance Management
Functional Development / •Key talent & change management
•Leadership development based on the Leadership Diamond ™
expertise Leadership / HR •Organization Structure for Excellence & Growth
•Strategy, Governance & organization
•Sourcing
IT •Architecture
•Project Management
•Cost / Overheads Reduction
•Cash-flow Management & Capital Structure Advisory
Finance •Project Evaluation & Risk Management
•Syndication-Debt & Equity
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