Verizon was recently informed by Yahoo, a company they inked a $4.8 billion purchase of back in July, that in 2014, Yahoo's servers were hacked and over 500 million Yahoo user accounts loaded with personal data were stolen. Now, various reports in the news are suggesting Verizon is going to ask for a $1 billion reduction in the price of the deal. It is in a business's own best interest to handle this data as it would any other intellectual property, i.e., as a very valuable asset.
POSTED BY Charles E. Root Jr. MS. AT 9:59 A.M. November 14, 2016TAGS: Case Study | Valuation | Charles E. Root Jr. MS. | Data Security | Mergers and Acquisitions
Companies buy and sell intellectual property (IP), including patented technology, in all industries, ranging from high-tech products like semiconductors to relatively lower-tech products like non-durable consumer goods. Businesses can take advantage of these often fast-moving opportunities if they have the appropriate IP valuation tools. These tools are particularly important when market and technology uncertainties are highand managers need to model different market scenarios.
Serco, a FTSE-100 outsourcing company based in the UK, operates contact centers for a large, FTSE 100 broadband provider, who was seeking to raise the level of performance for customer service. ipCG's innovation process was used to discover and prioritize 300 innovation ideas toward this objective. Just three months after the process began, Serco's performance on handling customer complaints moved to the top of the client's supplier performance table.
Over the past two years, ipCG completed several IP valuations in the IT industry. In most cases, our clients contracted the models for external purposes - to estimate IP value for M&A negotiations. However, work products generated significant internal benefits as well. We share this case study with you to demonstrate the many strategic and managerial insights that can be gleaned from thoughtful IP valuations.