THE RELEVANCE OF INTELLECTUAL PROPERTY IN MERGERS AND ACQUISITIONS

Abstract

Intellectual property Rights are very crucial to mergers and acquisitions since they are amongst the most valuable assets that an organization may hold. It is therefore very necessary that parties to mergers and acquisitions consider it very important to seek expert advice in every step of their transactions, more so when difficult issues are confronted in the valuation of intellectual property driven mergers and acquisitions. It cannot be gainsaid that a poorly structured business strategy is a recipe for failure of intellectual property driven mergers and acquaintance. Conversely, a well structured strategy and conduct of due diligence in the process of mergers and acquisitions is fundamental to the success of the deal. This paper using the doctrinal methodology with primary and secondary sources, examined the concept of mergers and acquisition in general, the nature and scope of intellectual property as a right and proceeds ultimately to show the relevance of intellectual property in mergers and acquisitions. It found that in the digital age, Intellectual property has become a meaningful value driver in mergers and acquisitions transactions. It also found that an early assessment and consideration of all IP assets of the target business generally referred to as due diligence is critical. It recommends, inter alia, that due diligence should be conducted early in the process so as to determine the actual worth of the target company’s IP portfolio and as well undertake relevant risk assessment which are key to a successful merger and acquisition transaction.