Services

Valuation

At FIN IP Group, we bring a wealth of experience in intellectual property licensing and a deep understanding of financial theory to bear in delivering precise and dependable valuations.

Royalty Rates

FIN IP Group leads the industry with a proprietary approach in developing royalty rates for both new and existing programs.

Licensing Program Development and Strategy

FIN IP Group has a unique combination of IP licensing and Financial Modeling experience. 

Licensing Program Development and Strategy

FIN IP Group has a unique combination of IP licensing and Financial Modeling experience. 

Financial Modeling and Market Research

At FIN IP Group, we leverage our extensive expertise in finance and financial modeling to conduct rigorous and compelling analyses for any business case.

Financial Modeling and Market Research

At FIN IP Group, we leverage our extensive expertise in finance and financial modeling to conduct rigorous and compelling analyses for any business case.

Financial Reporting and Tax Reports

FIN IP Group employs its profound expertise to craft sophisticated and comprehensive Financial Reporting and Tax reports, fortified to endure the exacting scrutiny of both internal auditors and government tax agencies.

Financial Reporting and Tax Reports

FIN IP Group employs its profound expertise to craft sophisticated and comprehensive Financial Reporting and Tax reports, fortified to endure the exacting scrutiny of both internal auditors and government tax agencies.

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Valuation

Valuating Intellectual Property (IP) is a distinctive discipline that demands analytical acumen, a mastery of finance theory, and access to an extensive body of research. Without hands-on experience and immersion in the IP domain, a valuator cannot accurately reflect the realities of the IP industry in their assessments. Careless selection of drivers and assumptions can lead to unreliable valuation results.

With extensive expertise in licensing, intellectual property, and valuation services, FIN IP Group provides tailored appraisals and valuation services aligned with your specific needs. Choosing FIN IP Group guarantees a thorough and accurate valuation.

IP valuation primarily encompasses three key approaches: the income approach, market approach, and cost approach. Each method is carefully considered to ensure a comprehensive and reliable valuation outcome.

Income Approach

The income approach assesses the value of patents by evaluating the projected economic income, which refers to future cash flows, that can be generated throughout the remaining economic lifespan of the patents.

This method hinges on a precise comprehension of the underlying royalty base, encompassing factors like revenue, units, subscribers, or users. It further involves the application of an appropriate royalty rate to this identified royalty base. Achieving accuracy in this process demands an IP valuator with an extensive background in licensing and transactional experience, as they must discern which royalty rates to apply, know where to source them, and understand how to interpret royalty bases across diverse markets. Valuations conducted by non-specialized valuators in the field of IP are likely to yield significantly inaccurate results.

Market Approach

The price paid for a comparable patent or group of patents in an open marketplace serves as a strong indicator of patent value. However, the unique nature of intellectual property presents challenges in finding directly comparable market transactions. Additionally, when such transactions do occur, the terms of exchange are often undisclosed to the public. These factors create complexities in adjusting for disparities between market data and the subject IP.

Drawing upon our in-depth understanding of technology and other key value drivers like encumbrance profiles, patent life, and international filings, FIN IP Group holds a distinctive edge in the identification of comparable transactions. We maintain a comprehensive transaction database and leverage our access to top-tier third-party data sources. This allows us to refine our assessments and ensure a precise valuation of intellectual property assets.

Cost Approach

The cost approach evaluates intellectual property (IP) based on the expenditure required to produce or replicate the subject IP or IP with comparable utility. One notable drawback of this approach is that investment expenditure doesn’t always directly equate to value.

Leveraging FIN IP Group’s extensive expertise and proficiency, we deliver valuation reports that stand out for their accuracy, minimal variance, and robust defensibility within the industry. Every member of our team at FIN IP Group possesses advanced business and finance degrees, demonstrating exceptional proficiency in financial theory, holding relevant designations, showcasing technical skills, and boasting industry experience specific to intellectual property. This combined knowledge and experience ensure that our valuations are unparalleled in precision and reliability.

Royalty Rates

Determining a royalty rate hinges on a fundamental question: how much should a licensee compensate a licensor for intellectual property rights? At FIN IP Group, we bring an innovative and industry-leading perspective to the table when it comes to crafting royalty rates for new IP licensing initiatives, refining rates for existing programs, and establishing rates for complex IP transactions such as litigation settlements.

One of the most prevalent missteps we observe in the realm of licensing deals is the insufficient attention given to the development or defense of royalty rates. While parties allocate substantial resources to the legal and technical aspects of a licensing arrangement, the requisite financial analysis to maximize the value of their intellectual property often takes a backseat. In many instances, royalty rates are chosen based on personal intuition rather than a pragmatic assessment. Failing to present a comprehensive financial analysis can result in stalemates, as neither party truly grasps the deal’s true worth. Our dedicated team at FIN IP Group diligently guides clients through these potential pitfalls, ensuring the development of fitting and well-supported rates.

Licensing Program Development and Strategy

FIN IP Group brings forth a distinctive fusion of expertise in financial modeling and intellectual property licensing. This exceptional combination empowers us to craft precise, dynamic, and sophisticated licensing models, ultimately optimizing the value of our clients’ IP monetization endeavors. Our strategic IP licensing program development services encompass:

  • Thorough Analysis of Licensing Targets
  • Development of an Addressable Royalty Base
  • Adjustments for Encumbrances and Foreign Jurisdictions
  • Forecasting Settlement Timing and Utilization of Present Value Techniques
  • Projections of Program Costs and Cash Flows
  • Preparation of Licensing Presentations for Negotiations

By choosing FIN IP Group, you gain a strategic advantage. Our meticulous work in licensing program development significantly elevates the likelihood of successful deal outcomes, ultimately maximizing the worth of your intellectual property assets

Financial Modeling and Market Research

Our team of experts is adept at modeling a wide range of scenarios. We adhere to industry best practices to ensure our clients can easily navigate and scrutinize our models, instilling confidence in the results. We are staunch proponents of the belief that powerful strategy necessitates robust analysis. All our team members are trained in the latest financial modeling techniques, with several holding the distinction of being Advanced Financial Modelers (AFM).

Furthermore, we possess a knack for market research, excelling at uncovering data points that may elude others.

Our services in financial modeling and market research encompass:

  • Program Profitability Analysis and Advisory
  • Various Sensitivity Models, including Heatmaps and Tornado Models
  • Binomial Lattice Models for Litigation Venue Analysis and the Evaluation of Settlements from
  • Pre-Litigation through CAFC Appeals
  • Waterfall Models for Financing and Partnerships
  • Cashflow Forecasting for Licensing and Internal Planning
  • Access to our Extensive Market Research Library and Network of Third-Party Market Research Suppliers

If you have a problem or concept, rest assured, we have the capacity to model it with precision and expertise.

Financial Reporting and Tax Reports

At FIN IP Group, we possess the experience and capabilities necessary to deliver reports of the highest quality, designed to withstand the rigorous examinations of internal auditors and government tax agencies. Our approach is anchored in the best practices established by the American Institute of Certified Public Accountants (AICPA).

Our IP financial reporting and tax services encompass:

  • Purchase Price Allocations
  • Transfer Pricing
  • Fair Value Assessments
  • Revenue Recognition

ETHAN HENNIGAR

Senior Financial Analyst

Ethan Hennigar, a valued Senior Financial Analyst at FIN IP Group, specializes in market research and due diligence, lending meticulous attention to detail to enhance project outcomes. His expertise extends to conducting extensive research within the intellectual property landscape, with a particular focus on Standard Essential Patents (SEPs). Additionally, he contributes significantly to financial modeling and conducts thorough company-level financial analyses.

Within the Sprott School of Business, Ethan assumes the role of a Sector Manager on the investment fund, where he leverages his skills to strategically invest $2 million in real assets for maximum return on investment.

His proficiency in various financial modeling techniques translates into the creation of comprehensive valuation models for our clients.

Moreover, Ethan serves as a Teaching Assistant at Carleton University, applying his competence in data analysis to guide first-year students in acquiring new techniques.

Ethan holds an Advanced Financial Modeler designation issued by the Financial Modeling Institute and is currently pursuing a Bachelor of Commerce degree with a double major in Accounting and Finance at Carleton University (Sprott School of Business).