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Valuation of Early Stage Technologies: Tools, Methods, & Case Examples

Date: June 1 - 2, 2011

Location: Cambridge, MA

A two-day workshop on how to assess the current and potential value of your company’s intellectual property as well as technologies to be acquired

Many standalone intellectual properties are worth more than companies in the S&P 500. Early stage technologies rely heavily on IP – without it, they may command little value in the market.  Yet, IP valuation remains tricky; there are no comparables in the market, discount rates are not directly observable, competitors can attack protections, and the commercial market may be less than expected.

While correctly assessing IP value can lead to remarkable shareholder wealth creation, incorrect valuation can be very costly. In today’s environment of open innovation and technology partnerships, this is particularly true. To provide you with realistic guidelines to correctly value your organization’s early stage technologies, this course provides detailed steps to:

  • Identify key sources of value.
  • Decide which valuation approach to use for different situations: cost, market, income.
  • Correctly assess market potential, value proposition.
  • Prioritize opportunities—invest or divest appropriately to maximize ROI.
  • Establish ownership, license, and/or partnership deals.
  • Protect and leverage your firm’s intellectual property.
  • Strengthen your patent and product portfolio.

This hands-on session is led by Mike Pellegrino, author of BVR’s Guide to Intellectual Property Valuation, and one of the world's foremost experts on how to value early stage technologies. Through a combination of methods, case examples, and hands-on exercises, you will learn to take the guesswork out of this critical activity. 



This workshop is offered in partnership with Business Valuation Resources, LLC

Mike Pellegrino
President and Founder
Pellegrino & Associates, LLC

Mike Pellegrino is the author of BVR’s Guide to Intellectual Property Valuation. His firm, Pellegrino & Associates, LLC, offers a range of valuation services that merge complex intellectual property, finance, and technology issues into quantifiable, defensible value opinions. He specializes in early stage IP and software valuations. Before founding Pellegrino & Associates, Mike had a successful career as both a software engineer and as a finance officer for a leading Indiana technology firm. He has provided valuation guidance internationally for clients ranging from FORTUNE 500 companies to municipal governments, on projects as diverse as consumer products and military communication systems.
 

Specifically you will learn:

  • How to decide what technologies to invest in and what they are worth.
  • The latest intellectual property approaches; how to protect your interests while achieving mutual gain.
  • Methods that work in a variety of situations, including patent portfolio valuation, investment, divestiture, partnerships, etc.
  • Open innovation and valuation of jointly developed IP.
  • How to deal with uncertainty and risk.
  • How to factor in data such as:
  • Success rates getting products to market.
  • Market evidence for implied rates of return for projects.
  • Market share for competing solutions.
  • Historical financial performance for similar technology.
  • Market adoption for similar technology.
  • Costs associated with bringing technology to the market.
  • How to avoid common mistakes.
  • How to choose winners in the R&D pipeline to fund.
  • How to prioritize outside opportunities.
  • To make better deals and investment decisions and achieve higher ROI on technology.

5 Key Deliverables

  1. Models and templates to develop your own technology valuation process – including IP cost of capital model and full-fledged valuation conclusion.
  2. Keys to success based on best practices from leading firms.
  3. Recommendations and advice for your specific challenges.
  4. Comprehensive reference materials, including spreadsheet models.
  5. Implementation guidelines and action steps

Day 1

8:00 a.m.  Registration/Continental Breakfast

8:30-10:00 a.m. Session 1:  What Is IP Valuation?

  • Overview of early stage technology valuation models and methods: cost, market, income
  • Reasons for valuation – which methods are most appropriate for: licensing, raising capital, acquiring, divesting, and open innovation partnering, including co-development of new IP
  • Methods: discounted cash flow (NPV), Monte Carlo, real options, patent auctions, rules of thumb, risk adjustment, and more
  • Factors important in valuation method selection
  • General IP valuation considerations – what constitutes a quality valuation work product and report

10:00-10:20 a.m.Coffee Break

10:20-12:00  Session 2:  Tying Technology Valuation to Your Business

  • Identifying key sources of value for your firm
  • Protection: key steps you must take to ensure full IP value is realized
  • Picking the right path – assessing market potential, value proposition
  • Industry valuation examples – the good, the bad, and the ugly
  • Case study: assessing the value of a technology to be acquired (or licensed) – the process, the results, and the long-term outcome
  • Discussion: Participants share experiences and challenges

 12:00-1:00 p.m. Lunch

1:00-4:45 p.m. Session 3:  Advanced and Practical Working Examples of IP Valuation

  • Calculating royalty rates
  • Assessing IP value propositions
  • Evaluating and modeling market adoption/uptake curves
  • Exercise: Applying Microsoft Excel model**
  • Day One Wrap-Up

5:00-6:00 p.m. Wine and Cheese Reception

Day 2

8:00 a.m.  Continental Breakfast

8:30-12:00 a.m. Session 4:  Advanced and Practical Working Examples of IP Valuation (Continued)

  • Realistic accounting for time variance
  • Establishing discount rates (risk appropriate)
  • Evaluating relative product feature strength
  • Imputing possible product market share
  • Exercise: Applying Microsoft Excel model **

12:00-1:00 p.m. Lunch

1:15-3:45 p.m. Session 5:  Applying Tools and Methods

  • Accounting for uncertainty in valuation models
  • How today’s economy has affected valuation – examples of recent deals
  • Other considerations – company reputation/branding, global market factors, freedom to operate, etc.
  • Avoiding common mistakes
  • How to choose winners in the R&D pipeline to fund
  • How to prioritize outside opportunities
  • Discussion about challenges and experiences
  • How to apply tools and valuation methods back at your organization

3:45-4:00 p.m. Wrap-Up/Session Concludes

** Bringing your laptop is recommended for these exercises


 

 

This workshop is designed specifically for technology managers, CTOs, SVPs, and VPs of R&D, technology development, business development, strategy, open innovation, sourcing/scouting, and finance. Cross-functional team attendance is encouraged. (Group discount available, please see registration page.)

Important notes:

  • Bring your laptop! This session includes the opportunity to work with Excel-based spreadsheets and build a complete valuation using models provided by the instructor.  You may share a computer with others if you choose.
  • Limited Attendance. This workshop is strictly limited to 35 to provide an optimal learning experience for all participants – reserve early to ensure your seat.

 

Dates/Schedule: The workshop will be held June 1-2, 2011. Registration and continental breakfast begins at 8:00 a.m. on June 1; the workshop begins at 8:30 a.m. and concludes at 4:00 p.m. on June 2.

Location/Accommodations: The Le Méridien Cambridge-MIT, 20 Sidney Street, Cambridge, MA has a block of rooms reserved for Management Roundtable at a group rate of $199 per night. Please call 617-577-0200 for room reservations, and mention that you will be attending Management Roundtable’s Technology Valuation workshop. You can also reserve your room online.(Be sure to reserve your room early; space is limited).

Registration Fee:
$1995/person.  Fee includes workshop materials, luncheons, refreshment breaks, reception and post-workshop follow-up. Group Discount: Teams of 3 or more that register together may deduct $100 each from the fee.

No-Risk Guarantee:
Your satisfaction is 100% guaranteed – money-back or credit. If you’re not satisfied with the quality of this program, let us know in writing and we will refund your registration fee.

Cancellations/Substitutions:
You may send a substitute attendee in your place at any time with no penalty (please inform us in advance). Cancellations made within 5 business days of the event are subject to a $500 administration fee or the full fee can be credited towards a future Management Roundtable event. No-shows are liable for the full fee.

Workshop Attire:
Business casual. Layers recommended as room temperatures may fluctuate.

Recommended CPE: 15.5 Credit Hours  (Specialized Knowledge & Applications)

Prerequisites: None
Program Level:
 Advanced
Preparation Required:
 None
Delivery Method:
 Group Live, Group Internet-Based

Business Valuation Resources, LLC is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be addressed to the National Registry of CPE Sponsors, 150 Fourth Avenue North, Suite 700, Nashville, TN 37219-2417. 
www.nasba.org 
NASBA Sponsor

Workshop brochure

Download workshop brochure

How to register

Register for this event:

Or register by phone:

Call 1-800-338-2223 or 781-891-8080 (9:00am - 5:30pm EDT)

In company training

This session can be brought directly to your site. Benefits include:

  • Lower cost per participant
  • Time savings
  • No travel required
  • Content tailored to your specific needs
  • Implementation is jump-started through team participation and instructor's hands-on guidance

Contact 781-891-8080 for more information and price quote.