Valuation Services

About

Our valuation practice is focused exclusively on software and e-commerce companies. Clients look to us to assist them in the valuation of software and e-commerce companies as well as IP assets, including software products, patents, trade secrets, copyrights, and trademarks. We have also been asked to develop analytical toolsets and related quantitative models that can be used by sales people to “make the business case” for technology investments to prospective clients.

Business Transactions

We have provided valuation services and fairness opinions for publicly-traded and closely-held businesses for numerous business transactions, including sales, mergers and acquisitions, and carve-outs. This work uses proven methodologies, including the traditional three valuation approaches (income, market, and asset), and, where appropriate, more advanced tools, including real options and Monte Carlo analysis.

Our analyses draw from multiple databases and proprietary information that we have developed and maintained over many years of practice with software and e-commerce companies. One of our competitive advantages for clients when doing valuation work for business transactions is our expertise in both software technologies and finance.

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Litigation

We have been retained to value IP assets in several litigation matters involving trade secrets, copyrights, patents, and trademarks (Lanham Act). Our work considers business, technical, and financial factors in the calculation of fair market value and economic damages, including lost profits and reasonable royalties.

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Making the Business Case

One of the major challenges for sales people in technology industries is proving that their products and services will provide a positive ROI to prospective customers. In response to client inquiries, we have developed and now license proprietary analytical toolsets and related quantitative models that can be used by sales people in selected technology industries to “make the business case” to prospective clients. These models enable salespeople to combine their own data and information about the performance and capabilities of their products and services with macro-level information, including, for example, regional utility costs and labor costs with financial metrics customized for each prospect.

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Representative Engagements

We were retained by a publicly-traded company that provides outsourced services to global corporations to assist in the due diligence process, including valuation of the company’s IP, for the acquisition of a software and services company. Our valuation work included assessing the architecture and design of the target company’s software and consideration of several technical and business issues, including scalability and performance.

We were retained by telecommunications software and services company to value their software in anticipation of private-equity and bank financing.

We were retained by a Boston-area company to value the company’s patent and other intellectual property and to assist management in the negotiation of a licensing agreement with a global distributor.

We were retained by counsel in a commercial litigation matter to value a telecommunications software company. Our analysis included the income approach, the market approach, and real options.

We were retained by counsel for the plaintiff, a publicly-traded software company, in a trademark and trade secrets case to determine lost profits as a consequence of the defendant’s actions.

We were retained by counsel for the plaintiff, an e-commerce company, in a patent case to determine lost profits and, alternatively, reasonable royalties as a consequence of the defendant’s infringement.