M&A Insights – Your Technology

The value of a business can be entirely in its technology – but that is rare. Most acquirers are more interested in how the technology is being used to keep customers happy. That said when technology is a key part of the deal there are a number of things that buyers will look for, for instance:

• Is the IP protected through a patent? Whilst you may not be willing or able to defend a patent action, your acquirer will be and hence it has greater value in their hands
• Do you own all the IP? It is surprisingly common for software rights to have been inadvertently left with the developer. Similarly, do you have the right to use any 3rd party code within your applications?

A pre-sale technology audit can be an effective way to ensure that you maximise the value if your IP.