Identifying companies for M&A/investment target utilization map

https://whimsical.com/m-and-a-en-UGY9GyxGbGiqbLJHb7VGtR

Using the Augmented Reality (AR; AR glass) technology field as an example, we provide contents for discovering M&A/investing companies using PatentPia GoldenCompass. If you click on the chain(link) marks that are combined to each item in the above utilization map, the example page will open in a new window.

Identifying M&A/investing company candidates from a patent view

There are so many factors that go into the identification, review and execution of technology companies for M&A and investing companies. The most objective, and virtually the only, comparison with companies in technology is patent data.

A small to mid-sized technology company may have a good patent portfolio, but it doesn't really represent its true value in the marketplace. However, if a large/ global company with market leadership or market dominance owns/leverages the patent portfolio of the company being acquired/invested in, the i) disruptive power, ii) impact, iii) value owned/leveraged, iv) market dominance , v) bargaining power, etc., becomes incomparably higher.

Advantages of patent data

Highly objective early stage data

As patent data is related to R&D, it helps to detect technology innovations objectively at an early stage.

Proactively recognize key personnel information

For M&A/investments in technology companies, advance recognition of key research personnel is important. In M&A/investments, retention of key personnel can be reflected in the contract terms or contract price.

Contribute to price control in M&A/investments

When shortlisting or negotiating with technology companies for M&A/investments, prior awareness of a company's financial vulnerability is important for acquiring assets at a lower price. There are several important signals in patent data that indicate a company's financial vulnerability. These include i) a sharp decline in (overseas) patent applications, ii) an increase in the abandonment of annual maintenance fees for patents in possession, and iii) the setting up of security over patent rights.