Traditionally, the asset-based lending (ABL) industry has focused on accounts receivable, inventory and machinery as suitable collateral. However, the industry has evolved to view certain types of intellectual property (IP) as acceptable collateral. In particular, licensed IP rights generally have payment streams associated with them, generating cash flow for the owner of the IP. Examples include patents, copyrights and trademarks. Cash flow-based lenders may also make financing available to businesses with well-defined, recurring revenue streams, such as maintenance contracts. In other cases, lenders may need an estimate of the enterprise value of a business partner to support a lending agreement.
We have extensive experience valuing licensed IP and recurring revenue streams globally, and can provide defendable, well-documented opinions of value to support lending decisions. We have also developed valuations to support the bidding process among lenders for IP-backed loans, and can provide enterprise valuations across a wide variety of industries. Deliverables can be tailored specifically for each engagement to provide different levels of value based on your company's lending standards, including fair market value, net orderly liquidation value (NOLV) or net liquidation value (NLV).