Valuation of battery technology to assist with licensing-in negotiations
Valuation of battery technology to assist with licensing-in negotiations
Patent Valuation - Licensing-in Negotiations
Stout was hired by a leading battery manufacturer to provide a valuation analysis related to the client's potential licensing-in of an innovative technology expected to improve the performance of consumer batteries. Stout identified and quantified the expected incremental economic benefit of the technology to the client and developed a dynamic valuation model the client could use during its negotiations with the technology owner. The dynamic model allowed the client to update the model's assumptions as it became more knowledgeable during the negotiation process. The dynamic model also included functionality that allowed the client to convert the value of the technology into licensing deal terms such as up-front payments, milestone payments, and running royalties. Stout advised the on common deal structures for similar transactions. The client used Stout's valuation and dynamic model to support its negotiations with the technology owner.