IP Due Diligence In M&A Transactions And Investments

Intellectual property has become an increasingly important driver of M&A transactions and investments in technology companies. IP is particularly significant in transactions involving medical, life-science and biotechnology companies, which rely heavily on patents and other proprietary information. While most target companies will tout their patents as key assets that justify the purchase price, a buyer/investor’s insight into the scope, validity and term of such assets is critical to understanding whether the target company’s patents, in fact, provide the value claimed by the target. An acquirer or investor will also benefit from an assessment of whether the target company has exposure to patent infringement claims after the transaction closes.
This article, “Best practices in IP due diligence for M&A transactions and investments,” published in CorporateLiveWire’s Intellectual Property 2021 Expert Guide, explains how it is essential to conduct IP due diligence in order to gain a meaningful understanding of the IP assets and potential IP threats involved in the transaction.