How important is it to assess IP assets for decisions related to Mergers & Acquisitions?

Mergers-Acquisitions or collaborations allow business enterprises to enhance their competitive positioning, and in certain cases, to expand or downsize. There are many factors that are responsible for a successful merger or acquisition and one of them is IP asset evaluation.

Business enterprises, that are looking to strengthen their competitive position, should have a thorough knowledge of their IP portfolio’s strengths and weaknesses (also known as technology gaps) with respect to the future market requirements in their business domain.

To fill or narrow down these technology gaps, such business enterprises have the option of taking the path of a merger or acquisition or collaboration with other business enterprises working on similar technologies and which would complement their present line of business.

One thing that has to be kept in mind by such business enterprises is that they should thoroughly evaluate the IP assets of the enterprises they want to collaborate with both in terms of the monetary component and also from a point of view of strengthening their competitive position in the domain.

A great example in recent years is that of Ford Inc and Carbon3D, wherein both entities are manufacturing automotive spare parts using 3D printing in collaboration with each other.

Ford has a strong automotive IP portfolio and Carbon3D has a strong 3D printing portfolio, and therefore, this was a great strategic partnership giving both these entities an edge over their competitors. Additionally, I would also like to put light on the fact that with such strategic partnerships business enterprises can respond to dynamic changes in the market with shorter turnaround time.

An article talking about the strategic partnership between Ford Inc and Carboc3B mentioned that “Ford was able to cycle through more than 14 designs in 19 days to design and test the parts that are now on the F-150 Raptor in the Chinese market” , which again would not have been possible without a collaboration of this sort.

Determining the strength of your IP portfolio or the strength of the IP portfolio of an organization with whom you could possibly collaborate has always been a tedious and expensive task. But now with the help of automated tools such as XLPAT, evaluating IP portfolios has become very quick and cost-effective. There are multiple case studies where the use of XLPAT has resulted in quicker and more cost-effective decisions in regard to mergers or acquisitions or collaborations primarily for the purpose of strengthening an organization’s competitive position in a technology domain.

XLPAT is an automated smart search engine that is backed by Artificial Intelligence, Natural Language Processing & Machine Learning. XLPAT learns from real-time data that is fed to it from various sources such as patent databases, product repositories & many more, and therefore making the output much more accurate.

To know more about how Xlpat can help you in checking the market trends, strengths and technology gaps of your IP portfolio, please visit www.xlpat.com

Reference:
https://www.plasticsnews.com/article/20190128/NEWS/190129888/ford-carbon-collaboration-widens-3d-printing-possibilities

Leave a Reply

Your email address will not be published. Required fields are marked *