Intellectual Property Management Is a Direct Link To Yield Optimization

For over 30 years, we have been involved in businesses valuation. Throughout this time, overall economic trends, methods, standards, base ratios, and other technical tools have changed dramatically.

We have consistently noticed that untangible assets are often on the back burner for small businesses.

Often, these assets are very valuable (and closely tied to the business’ success). Documenting these assets can help grow the business or maximize its valuation when the time to sell has come.

For example,

- Company ABC has developped a very specific SUD treatment program that produces outstanding results. Once the program has been documented for internal purposes (integrity, consistency, quality control, etc.), with a modest investment that program can now be a source for accreditation for other providers, and consequently help Company ABC’s bottom line. It can also be a way to reward the authors (e.g., clinicians) without changing the balance of power between partners.

- Management of ABC company desires to sell the company. Having an IP strategy in place will substantially increase the value of the business. It will also allow sellers to tailor the terms of the sale in a more attractive set of terms through a favorable tax environment. Example business ABC is sold for $ 1 MM. The price paid out of exploitation after sale or take over is cheaper on a tax standpoint than a purchase price paid out of benefits that were already taxed. Such startegy may also help increase the selling price when Seller is not on hurry to be paid and when proper guarantees are in place).

These days IP is everywhere and ensuring that your company has what it takes is a worthwhile investment. It is with that thought in mind that we created a simple yet comprehensive checklist for business managers to determine where their businesses stand.

You can access the checklist in our Useful Documents library.

For more information, please contact us at info@seed4success.com