One of the most unfortunate aspects of IP assets in bankruptcy is intellectual property and intangible assets is that too often these assets are either ignored until the very end of the process, or overlooked entirely. Increasingly, particularly given the declining value of real estate and other tangible assets, IP and other intangible assets can be one of the most valuable asset groups.
However, in the context of a bankruptcy or reorganization, these assets and their valuation and sale are often treated as an afterthought or as the last step of the process — meanwhile, their value has been declining as the process goes on. Therefore, obtaining accurate market-based values early in bankruptcy situations is important because the valuation and disposition of assets, either for securitizing new funds for the debtor and / or satisfying the claims of the creditors, is clearly paramount.
The valuation process in bankruptcy and reorganization follows the same general patterns as when IP is being valued in a transaction or other context. The first step is to identify all the intangibles in the estate, and then to group them into useful bundles and triage them for value. In addition, one should identify incremental value within the family of intangibles in order to uncover additional financial security and / or financial leverage from the assets. The goal, of course, is to maximize the value, either for the creditors or for the financiers involved in the reorganization of the bankrupt estate. Identifying all of the IP and intangibles, and all of their potential uses that have market value, gives the court, bankers, creditors and company management a solid basis for a total asset valuation of the bankrupt estate.
CONSOR offers a range of highly specialized services to help you understand the value of your intellectual property portfolio and how that value is impacted as a result of the financial difficulties. We work closely with clients and the courts on these typically time-sensitive projects to unlock the value contained within the intellectual property portfolio according to the strategy that best suits your specific needs, whether that be liquidation, licensing, partial sale, reorganization, merger, or joint venture. If outright sale of intangible assets is called for, we offer a comprehensive disposition package to identify, bundle, triage, market and ultimately sell the assets through auction or other sales methods.
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