Thursday, 19 January 2017

Why is IP being left behind in the boardroom?

Here, in the first in a series of articles, Cipher casts a light on the M&A trends of 2016 and the outlook for 2017.
Why is IP being left behind in the boardroom?

According to the latest research, 2017 could be a record year for deal-makers, with 57% of those surveyed by EY set to pursue acquisitions in the next 12 months. The same research indicates that as many as 91% of respondents are using big data and analytics as part of their deal process. Given this, contradictory results from a survey commissioned by Aistemos at the end of 2016 may come as a surprise.

Just 17% of respondents believe M&A decisions are always made with a sufficient understanding of the IP issues at play.

In an age where around 80% of company value is in its intangibles and where IP issues are increasingly at the heart of the deal, why is IP being left behind in the deal room?

The challenge faced by business leaders and IP professionals, is how to navigate vast patent landscapes when data is disorganised, incomplete, and unstructured, making it difficult to interpret or understand. Given these challenges, the timelines and budgets that dominate corporate deal-making, it’s little wonder that this type of analysis is often left to one side.

Complex questions require simple answers

This is why IP business intelligence tools like Cipher are fast becoming critical to decision support. By applying cutting edge analytics to the world’s most comprehensive and trusted set of patent-related data, Cipher delivers information clearly and instantly. A glance at some of 2016's biggest deals demonstrates this.

The acquisition of TMS allowed Canon to leapfrog competition to become the largest and fastest growing portfolio.

LinkedIn has amassed large portfolios by acquisition but recently shifted to in-house innovation and patenting.
A look ahead to 2017 Smarter deals in 2017

One can only speculate about what deals will be done in 2017. Will Comcast acquire T-Mobile, and will someone snap up Netflix? In any case, an analysis of three pending mega-deals for 2017 highlights the power of Cipher when applied to complex datasets:
  • DuPont and Dow Chemical
  • ChemChina and Syngenta
  • Bayer and Monsanto
The biggest shake up since the 90s?

If all were to get regulatory approval, it would put Bayer Monsanto in a proprietary throne both in seed technologies and agrochemicals. Is this the biggest shake-up since the 90s? View  our full Cipher report here

Smarter deals in 2017?

Amid the rumours and speculation, one thing is certain - the consequences of not assessing intangible assets with the same degree of scrutiny as financials can be disastrous to business performance. Those that choose to engage with IP data and incorporate it into their deal processes early will make better, smarter decisions.

With Cipher, information that is impossible to analyse manually is available to both IP professionals and business leaders at a click of a button. Cipher helps with corporate decision support by
  • - Providing market analysis and trends;
  • Identifying and evaluating potential targets;
  • Supporting due diligence and execution

Focus on what matters, make better decisions.

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