Valuation of an IP portfolio
Plantagon International AB operates in the urban agriculture sector and is a world leader in vertical farming. Their vertical greenhouses reduce the need for energy, water and pesticides, and make use of emissions of carbon dioxide, CO2, and the waste heat from homes, industries and offices. Plantagon is a Swedish company but their concept creates the greatest benefit in multimillion cities with high population density, particularly in Asia.
Plantagon sought capital for international expansion. The company’s biggest asset is its IP portfolio, and it was the company’s IP that would be the basis for funding. nevertheless, Plantagon lacked a defined value of their intellectual assets. Traditional methods based on cash flow is not applicable on this type of company where the assets consist primarily of IP. With that background, we were asked to identify the monetary potential of Plantagon’s IP portfolio.
By applying qualitative and quantitative methods, we investigated about a dozen value indicators relating to, among other things, Plantagon’s IP portfolio, organization and their business environment. We combined the outcome of these indicators with an IP Due Diligence and a Freedom-to-Operate-analysis, to identify the legal risks regarding the IP portfolio. The IP portfolio’s monetary potential was then determined by weighing the IP portfolio value indicators against its legal risks, given an existing position and a number of future conditions. Plantagon could then start substantive negotiations with investors and licensees, both in Sweden and on other continents. Groth’s work was carried out in a very professional way and the result is more concrete than when we previously used one of the three major accounting firms [in Sweden] for similar work. We wanted “no-nonsense” material without exaggeration, material that our stakeholders could understand and believe in. We got what we asked for, and benefit greatly from it in the ongoing development of Plantagon. /Hans Hassle, CEO of Plantagon International AB
"We wanted 'no-nonsense' material without exaggeration, material that our stakeholders could understand and believe in."