Newsletter: July 2009
Celebrating our 10th year
We want to thank all of our clients and friends for their support and continued business over the past decade.
We are celebrating our history by providing new and affordable services to our friends and clients. Our newest reporting service, FocalPoint Market Research & Analytics provides fast and accurate market data as it relates to technology valuations. We are also restructuring our newsletter to bring you important news in valuation criteria and how each contributes to the ultimate value of a technology.
Our FocalPoint Market Research & Analytics reports are custom designed for TTOs, start-ups and small businesses with tight budgets and limited access to accurate and reliable information. Our FocalPoint Market Research & Analytics provides market research data, trends and analysis that take the guesswork out of deciding which sets of data are accurate.
We have access to the very best information and statistics to take that burden from you. Along with our subscriptions to several well-known databases, we have been able to incorporate our own historical data, collections of information, databases we have purchased, current news articles and important events happening in virtually any technology. Our newest service is a great way to get an initial read on the potential of a new discovery, invention or process/product improvements.
Our newsletter series begins today and will be issued on a semi-annual basis. Topics will include the benchmarks used in license agreements to calculate technology values, what intangibles bring to the value of IP and tips that may help in negotiations.
We are delighted to have become part of the TechTransfer community and value relationships. You can count on Technology Resource to bring you useful and engaging information. In future issues we will examine real world case studies as allowed by our clients and show our readers how technology values are interpreted and structured in order to obtain maximum value.
We begin our in-depth analysis of how and why different categories or benchmarks are used for calculating royalties. To begin, we have analyzed several hundred license agreements and have found a great deal of difference in how royalties are calculated. We have analyzed the following areas for their diversity.
- Software
- Pharma/Biotech
- Biomarkers
- Energy
- Agriculture
- Retail trade
| Methods of calculating License fees |
Software benchmarks used:
Gross Margins
Gross Sales
Gross Revenues
Net Revenues
Sales
Revenue
Net Profit
Net Sales
|
Energy benchmarks used:
Gross Revenues
Sales
Net Sales
Gross Sales
Revenue
Gross Profit |
Pharma/Biotech benchmarks used:
Net Sales
Sales
Net Revenues
Gross Revenues
Gross Sales
Profit |
Agriculture benchmarks used:
Per Unit
Revenues
Gross Sales
Factory cost
Sales
Wholesale seed price
Net Sales |
Biomarkers benchmarks used:
Net Profit
Net Sales |
Retail benchmarks used:
Profit
Publication |
Quick Facts
According to McKinsey, China will have the 4th largest concentration of wealthy households in the world by 2015.
The current stimulus package is the largest Federal intrusion into private business and local governments since the Great Depression. However, it was World War II that took our country out of its financial malaise and not the New Deal.
By studying case histories, we have found several discrepancies in how technology values are determined and they are tied to one or more of the following:
- Societal segments being served
- Momentum of an industry segment
Valuation levels are generally considered to follow economic cycles. While this is generally true for large businesses that have long histories and have been analyzed by every brokerage and investment firm. But, what happens with the early stage technologies that are in development or candidates for start-ups or joint ventures?
The stock market is a gauge of consumption. The relative health of the economy is reflected in market conditions. Actual technology values do not always trend in tandem.
According to the latest Business Trend Survey by Tatum, LLC says the next 60 days will show a further decline in economic activity. The study was conducted on July 1st.
Technology Resource of the Southeast, Inc. is an objective, third party regional service provider. We specialize in assessment, analysis and valuation of new products and emerging technologies.
Call us anytime for assistance or free consultation. (423) 929-0380
Previous Newsletters:
Newsletter: June 2008
Newsletter: January 2007
Newsletter: October 2006
Newsletter: March 2006
Newsletter: October 2005
Newsletter: July 2005
Newsletter: April 2005
Newsletter: December 2004
Newsletter: September 2004
Newsletter: June 2004
Newsletter: January 2004
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