How our Patent Due Diligence Study Helped a US-based Cosmetics Multinational Company Acquire a Start-Up
How our Patent Due Diligence Study Helped a US-based Cosmetics Multinational Company Acquire a Start-Up: A US-based multinational company in the cosmetics domain recently approached Sagacious IP for conducting an exhaustive due diligence study. They were in the process of acquiring a start-up with a green peptide synthesis technology and wanted Sagacious IP to conduct an IP and technology due diligence study for the acquisition target. The following article discusses how we helped them through our exhaustive due diligence study to make informed investment decisions.
Brief About the Problem
Being one of the leading companies in the cosmetics domain, our client wanted to acquire a start-up with a green peptide synthesis technology. They planned to tap into the technology to drive their business growth.
Sagacious IP’s Solution
Sagacious IP began with developing an in-depth understanding of the target company’s technology and the overall green peptide synthesis domain. The team also identified the relevant information regarding the potential target such as company information, patent portfolio, its collaborations, etc. A patent landscape was then performed in the domain and patent references that disclosed various green peptide synthesis technologies were identified.
After preparing the landscape analysis, the team analyzed the target company’s IP portfolio via collaboration, citation studies, etc. and compared the portfolio with the identified patent references to prepare a SWOT (technical level) analysis. Then, an exhaustive (secondary) market research was conducted to identify alternative technologies and their owners that already existed in the domain. Further, the team compared the top technologies with the target company’s technology and provided some alternative acquisition targets. Finally, based on the IP and market study, all the risks, challenges and recommendations were summarised to provide a holistic picture of the domain and a detailed picture of potential target and its technology.
Our client was pleased with the technology and IP due diligence studies which provided a complete picture of the domain and a detailed picture of the potential target & its technology. Notably, these studies offered recommendations for acquisition targets and highlighted the advantages of the potential target as compared to its competitors.
The technical due diligence process analyzes and assesses the technology, products, and processes in an organization before acquiring or investing in a company. On the other hand, IP due diligence evaluates the quantity and the quality of IP assets owned by, or licensed to, either a business or an individual. It also assesses how their IP is captured and protected.
Conducting exhaustive IP and technical due diligence studies enables companies to make informed investment decisions. Most acquirers evaluate strategies, products, and processes of the acquisition target on their own. However, some of the firms hire renowned portfolio companies to assess the development process. A good starting point for such evaluations involves studying the process documentation and then delving into other aspects.
At Sagacious IP, we believe that it is crucial to understand our client’s problems and find solutions or develop strategies to navigate the challenges. The better we understand their problems, the better we will be able to serve their needs. Our Due Diligence Service provides relevant information to companies before they make any investment decisions such as buying, mergers & acquisitions, etc. The service can be instrumental in tracking down and managing important information. Click here to know more about the service.
-Harsha Agarwal (Life Sciences) and the Editorial Team