Be prepared to present full ownership of your intellectual property
Ask yourself this question, when selling my business, will I be able to show an acquirer that my company has full control and ownership rights over the intellectual property we have developed over the years? Here are things you will want to ensure you are ready to show to an acquirer:
- Documented proof of ownership of each of your company internet domains, trademarks and tradenames
- Documented proof that third parties you’ve hired over the years to help you create any of your company intellectual property have assigned 100% ownership to your company and that they can’t lay claim to any of it
- Documented proof that your employees, such as engineers, cannot lay claim to partial or full ownership of intellectual property they created while under your employment.
- Documented proof that if your intellectual property includes open-source software from third parties, that you have licensed rights to use their product within yours.
Bottom line here is when you go to exit, the acquirer of your company wants to assess risk. Part of their risk assessment is ensuring that intellectual property they are gaining and valuing within your business is truly yours and that no third party can lay claim to any of it or claim that you are using their product improperly. Exit planning takes time to ensure you can smoothly go through a third-party due diligence. Contact us so we can share tools with you that will ensure you are ready one day for a smooth due diligence process.
