You’ve built something with a lot of value. Your business has grown and now you’re ready to cash in on your hard work and dedication. Of course, you already know you’ll have to get “all your ducks in a row” before you can go to market and take offers on your business.
One aspect that many business owners fail to consider prior to selling, however, is whether or not they have a thorough intellectual property (IP) strategy. Without one, you could be leaving dollars on the table in the upcoming sale of your business. IP business assets are some of the most commonly-missed value points for sellers. Developing a successful IP strategy before the sale makes sure you don’t sell yourself short.
Step 1: Acquire Intellectual Property Protection
You might be thinking “I already have trademarks, patents, and/or copyrights registered for aspects of my business.” Great, that’s an important first step! Protecting your intellectual property marks an important moment to set yourself apart from the competition. Your protections should be thorough and stand for what you’re producing, how you’re producing it, what your brand is, what your brand means to the market, and many other aspects of your company that are worthy of protection. Tangible and intangible assets alike can be protected by an effective IP strategy. But don’t stop there
Step 2: Ensure Your Strategy Aligns With Business Objectives
We won’t say it’s “easy” to acquire intellectual property protections for your business, but it’s certainly more straightforward than this aspect of your strategy. You can throw a trademark on your company name and get a patent for a product you’re producing, but why are you doing it?
Your IP protections should be organized and optimized with the main business objectives in mind. What will the business look like five-ten years from now? Will these IP protections help you accomplish those goals? Will they help a buyer accomplish those goals after a sale? When you acquire IP protection, it puts your competition on notice that you are a market leader and are serious about giving yourself a competitive advantage – your buyers will acknowledge this and it should also be reflected in your purchase price.
Step 3: Organize and Assess the Value of Your IP Portfolio
Once you’ve gotten to the point where you can confidently say you’ve received protections for everything you need to protect and these protections can help guide you to the future of your business, you’re ready to add this to the value of your business. You will want to make sure you have all protections easily laid out and organized in a way that would be easily understood by potential buyers and their attorneys.
At CLARK.LAW, we can be a part of this process from the very beginning – helping you protect both tangible and intangible assets and aligning those protections with the goals of the company. We can also prepare you for the sale of your business by optimizing your intellectual property portfolio and set you up for success on the market. Contact our firm today and get ready for what’s to come.
CLARK.LAW
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