Due Diligence is a comprehensive and in-depth investigation into the assets, financial status and commercial capabilities of an enterprise or company, to determine whether the company or entrepreneur has real and business-value assets, to determine the value of these assets, and the extent to which the venture is exposed to competitive risk.
Business Due Diligence is of crucial importance to an entrepreneur or investor looking into the possibility of investing in a company, when a license is being purchased for the company’s technology, or before a company merges with another. Due Diligence is important in its own right, but particularly with respect to Intellectual Property, which, in most cases, lies at the heart of any business.
The scope of the Due Diligence and the issues it will cover, depends on the technology and nature of the transaction. Reinhold Cohn professionals ensure that the Due Diligence complexity and scope be consistent with the client’s needs and goals in the transaction.
Due to Intellectual Property’s great value in the technological world, Due Diligence must provide all of the important information on a company’s intangible assets. This knowledge enables to properly assess the parameters supporting the business plan, including the net worth of the company’s patents and the barriers they create for existing as well as potential competitors and other barriers such as unique and confidential knowhow, etc.
Due Diligence for a company working with the Reinhold Cohn Group provides the investor with a reliable and up-to-date snapshot of the Intellectual Property asset value and the venture’s inherent risks, if any, in a way that benefits the decision-making process.