{"product_id":"valuation-and-dealmaking-of-technology-based-intellectual-property-isbn-9780470193334","title":"Valuation and Dealmaking of Technology-Based Intellectual Property","description":"This indispensable tool provides readers with complete coverage of the issues, methods, and art of valuing and pricing of early-stage technologies including backgrounds in the core concepts, sources of value, methods of valuation, equity realizations, and negotiation strategies. \u003cp\u003ePreface vii\u003c\/p\u003e \u003cp\u003eDisclaimer viii\u003c\/p\u003e \u003cp\u003eAbout the Author ix\u003c\/p\u003e \u003cp\u003eAcknowledgments xi\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 1 Introduction to Opportunity Discovery, Valuation, and Dealmaking 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction: Technology D-V-D 1\u003c\/p\u003e \u003cp\u003eTaxonomy of Technology Licensing 5\u003c\/p\u003e \u003cp\u003eHigh Significance, High Ambiguity Contexts 7\u003c\/p\u003e \u003cp\u003eLicensing D-V-D and Innovation 12\u003c\/p\u003e \u003cp\u003eGoing Forward 23\u003c\/p\u003e \u003cp\u003eNotes 23\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 2 Risk and Reward 27\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eUncertainty 27\u003c\/p\u003e \u003cp\u003ePhronesis (Judgment) 31\u003c\/p\u003e \u003cp\u003eTechnology Uncertainty 32\u003c\/p\u003e \u003cp\u003eMore on Risk 35\u003c\/p\u003e \u003cp\u003eValue and Price 45\u003c\/p\u003e \u003cp\u003eTwo Final Points on Buying and Selling 48\u003c\/p\u003e \u003cp\u003eNotes 49\u003c\/p\u003e \u003cp\u003e\u003cb\u003eApproach I Opportunity Discovery 51\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 3 Identifying and Prioritizing Technology Opportunities 53\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSeller “Opportunity Space” 53\u003c\/p\u003e \u003cp\u003eThe Technology Box 63\u003c\/p\u003e \u003cp\u003eBuy-Side Expressions of Value: The Wheelbarrow 69\u003c\/p\u003e \u003cp\u003eOverview of Valuation Methods 71\u003c\/p\u003e \u003cp\u003eThe Six Valuation Methods 77\u003c\/p\u003e \u003cp\u003eConclusion 81\u003c\/p\u003e \u003cp\u003eNotes 82\u003c\/p\u003e \u003cp\u003e\u003cb\u003eApproach II Valuation 85\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 4 Method 1: Use of Industry Standards for Valuation 87\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Concept and Limitations of “Industry Standards” 87\u003c\/p\u003e \u003cp\u003eSources of Industry Standard Data and Information 97\u003c\/p\u003e \u003cp\u003eSurvey Results as a Source of Industry Standards Data and Information 98\u003c\/p\u003e \u003cp\u003eProposed or Established Norms 105\u003c\/p\u003e \u003cp\u003eShopped Term Sheets and Price Lists 107\u003c\/p\u003e \u003cp\u003eNews Sources of License Agreement Information 109\u003c\/p\u003e \u003cp\u003eJournals, Proprietary Databases, Reports, and Consultants 118\u003c\/p\u003e \u003cp\u003ePublished License Agreements as a Source of Industry Standards 119\u003c\/p\u003e \u003cp\u003eCourt Cases\/Judgments as a Source of Industry Standards 123\u003c\/p\u003e \u003cp\u003ePatent Pools 126\u003c\/p\u003e \u003cp\u003eLifetime and Organizational Learning 127\u003c\/p\u003e \u003cp\u003eAverage Error 127\u003c\/p\u003e \u003cp\u003eConcluding Observations and Cautionary Notes 129\u003c\/p\u003e \u003cp\u003eAppendix 4A: Outline of Agreement between DuPont and University of Houston 131\u003c\/p\u003e \u003cp\u003eNotes 134\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 5 Method 2: The Rating\/Ranking Method, and Tool 139\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eUbiquity of Rating\/Ranking 141\u003c\/p\u003e \u003cp\u003eOverview of How Rating\/Ranking Can Be Used in Valuation 145\u003c\/p\u003e \u003cp\u003eGroups and Grouping as a Fundamental Knowledge Forming Process 148\u003c\/p\u003e \u003cp\u003eUsing Rating\/Ranking to Value Technology: Factor Assessment 155\u003c\/p\u003e \u003cp\u003eDeveloping Criteria for Using Rating\/Ranking for Valuation of Technologies 162\u003c\/p\u003e \u003cp\u003eIllustrations of Applying the Rating\/Ranking Method 168\u003c\/p\u003e \u003cp\u003eIssues in Interpreting Value from a Rating\/Ranking Result 171\u003c\/p\u003e \u003cp\u003eUsing Rating\/Ranking to Value Technology: Classified Value 174\u003c\/p\u003e \u003cp\u003eUses of Rating\/Ranking with Approaches and as a General Tool 176\u003c\/p\u003e \u003cp\u003ePerspectives on Rating\/Ranking as an Approach with Licensing 182\u003c\/p\u003e \u003cp\u003eKnowledge, Uncertainty, and Humility 185\u003c\/p\u003e \u003cp\u003eConclusion 189\u003c\/p\u003e \u003cp\u003eAppendix 5A: Factors in Pricing License 190\u003c\/p\u003e \u003cp\u003eNotes 196\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 6 Method 3: Rules of Thumb to Determine Valuation 201\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eFoundations of Rules of Thumb 203\u003c\/p\u003e \u003cp\u003eCost Savings Example of the 25 Percent Rule 205\u003c\/p\u003e \u003cp\u003ePerspectives on the 25 Percent Rule 208\u003c\/p\u003e \u003cp\u003eUse of the 25 Percent Rule for Apportioning New Profits 209\u003c\/p\u003e \u003cp\u003eExamples of Applying the 25 Percent Rule to New Profits Licensing 211\u003c\/p\u003e \u003cp\u003eA Universal Rule of Thumb Chart 222\u003c\/p\u003e \u003cp\u003eOther Percent Rule Values 224\u003c\/p\u003e \u003cp\u003eSome Misuses\/Misapplications of the 25 Percent Rule 225\u003c\/p\u003e \u003cp\u003eOther Valuation Rules of Thumb Used (or Have Been Proposed) 226\u003c\/p\u003e \u003cp\u003eSummary Points on the Use of the 25 Percent Rule 229\u003c\/p\u003e \u003cp\u003eConclusion 231\u003c\/p\u003e \u003cp\u003eNotes 232\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 7 Method 4: Discounted Cash Flow Method to Determine Valuation 235\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eOverview of the DCF Method 236\u003c\/p\u003e \u003cp\u003eBasic Financial Concepts 247\u003c\/p\u003e \u003cp\u003eQuantification, Classification of Risk 265\u003c\/p\u003e \u003cp\u003eAn Example Cash Flow Projection from a License 277\u003c\/p\u003e \u003cp\u003eAdditional Considerations for Calculating DCF 289\u003c\/p\u003e \u003cp\u003eSegment and Scenario Analysis 293\u003c\/p\u003e \u003cp\u003eCash Flow Projections 299\u003c\/p\u003e \u003cp\u003eOther Issues to Be Considered with the DCF Method 318\u003c\/p\u003e \u003cp\u003eConclusion 330\u003c\/p\u003e \u003cp\u003eSources of Information to Develop Business Projections 331\u003c\/p\u003e \u003cp\u003eNotes 331\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 8 Method 5: Advanced Valuation Methods 337\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eModified Discounted Cash Flow Method 338\u003c\/p\u003e \u003cp\u003eMonte Carlo Method 345\u003c\/p\u003e \u003cp\u003eReal Option Methods 414\u003c\/p\u003e \u003cp\u003eConclusion 447\u003c\/p\u003e \u003cp\u003eOnline Resources 448\u003c\/p\u003e \u003cp\u003eAppendix 8A: Example Crystal Ball Report for Exhibit 8.18 449\u003c\/p\u003e \u003cp\u003eAppendix 8B: Crystal Ball Report Corresponding to the Results Presented in Exhibit 8.XX for a Double-Humped Cost Distribution Assumption 456\u003c\/p\u003e \u003cp\u003eNotes 464\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 9 Method 6: Valuation by Auctions 469\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction to Auctions 470\u003c\/p\u003e \u003cp\u003eWhen Auctions are Feasible 471\u003c\/p\u003e \u003cp\u003eAuction Examples 474\u003c\/p\u003e \u003cp\u003eAuctions as Distinct from Other Types of Dealmaking 479\u003c\/p\u003e \u003cp\u003eAuction Strategies for Buyers 489\u003c\/p\u003e \u003cp\u003eAuction Caution 490\u003c\/p\u003e \u003cp\u003eConclusion 491\u003c\/p\u003e \u003cp\u003eAppendix 9A: Bidder’s Agreement 491\u003c\/p\u003e \u003cp\u003eNotes 492\u003c\/p\u003e \u003cp\u003e\u003cb\u003eApproach III Dealmaking 495\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 10 Approach: Deal Structure 497\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eReturn to the Box and Wheelbarrow 498\u003c\/p\u003e \u003cp\u003eCash When Pricing Structures 502\u003c\/p\u003e \u003cp\u003eCash As Pricing Structures 507\u003c\/p\u003e \u003cp\u003eCash If Pricing Structures 517\u003c\/p\u003e \u003cp\u003eCash Maybe: Options 521\u003c\/p\u003e \u003cp\u003eConsideration Forms Beyond Simple Cash 522\u003c\/p\u003e \u003cp\u003eSpecial Form of Cash If: Equity 525\u003c\/p\u003e \u003cp\u003eBalancing Simplicity with Comprehensiveness 537\u003c\/p\u003e \u003cp\u003eConclusion 537\u003c\/p\u003e \u003cp\u003eNotes 538\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 11 People, Process, and Lessons Learned 541\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 541\u003c\/p\u003e \u003cp\u003eDeal Team 546\u003c\/p\u003e \u003cp\u003eDeal Targets 552\u003c\/p\u003e \u003cp\u003eNegotiating Plan 556\u003c\/p\u003e \u003cp\u003ePlan B 560\u003c\/p\u003e \u003cp\u003eConcluding Advice from Technology Dealmakers 565\u003c\/p\u003e \u003cp\u003eNotes 566\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 12 In Conclusion 569\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eApproach of Opportunity Discovery as a Quest 569\u003c\/p\u003e \u003cp\u003eApproach of Valuation: A Review of the Six Valuation Methods 572\u003c\/p\u003e \u003cp\u003eApproach of Dealmaking 583\u003c\/p\u003e \u003cp\u003eClosing Thoughts 592\u003c\/p\u003e \u003cp\u003eWebsite Resources 594\u003c\/p\u003e \u003cp\u003eNotes 594\u003c\/p\u003e \u003cp\u003eAppendix: List of Abbreviations and Trademarks 597\u003c\/p\u003e \u003cp\u003eBibliography 599\u003c\/p\u003e \u003cp\u003eIndex 603\u003c\/p\u003e \u003cb\u003eDr. Richard Razgaitis\u003c\/b\u003e is a Senior Advisor at CRAI, an international consulting firm providing expertise in economics, finance, and business strategy. He has over thirty years of experience working with the develop-ment, commercialization, and strategic management of technology, more than twenty-five of which have been spent specializing in the commercialization of intellectual property. He has negotiated numerous commercialization agreements with clients in the United States, Europe, and the Far East, ranging from Fortune 500 to small startup companies and is the author of four books on valuation and negotiation\/dealmaking published by John Wiley and Sons.  Commercializing technology inno-vation is no risk-free journey. But as technology licensing expert Richard Razgaitis thoroughly explains, by applying reasoned judgment and proven approaches, methods, and tools, you can profitably succeed in risk–based opportunity. Essential reading for licensing executives, M\u0026amp;A dealmakers, technology startups, and intellectual property consultants and attorneys, \u003ci\u003eValuation and Dealmaking of Technology-Based Intellectual Property\u003c\/i\u003e shows you how.  \u003cp\u003eThis new book—a completely revised and expanded edition of Razgaitis's previous book \u003ci\u003eValuation and Pricing of Technology-Based Intellectual Property\u003c\/i\u003e—brings together material designated as \"Approaches\" into three core technology business processes used for transforming technology into money: opportunity Discovery, Valuation, and Dealmaking, or the acronym D-V-D. In addition, this book introduces, develops, and applies the following six valuation methods:\u003c\/p\u003e \u003cul\u003e \u003cli\u003eUse of Industry Standards for Valuation\u003c\/li\u003e \u003cli\u003e \u003cp\u003eThe Rating\/Ranking Method, and Tool\u003c\/p\u003e \u003c\/li\u003e \u003cli\u003e \u003cp\u003eRules of Thumb to Determine Valuation\u003c\/p\u003e \u003c\/li\u003e \u003cli\u003e \u003cp\u003eDiscounted Cash Flow Method to Determine Valuation\u003c\/p\u003e \u003c\/li\u003e \u003cli\u003e \u003cp\u003eAdvanced Valuation Methods\u003c\/p\u003e \u003c\/li\u003e \u003cli\u003e \u003cp\u003eValuation by Auctions\u003c\/p\u003e \u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eThe use of Monte Carlo as an Advanced Valuation method has also been expanded in this new edition and an accompanying Web site, www.razgaitis.com, provides spreadsheets used in this book as well as a link to a free trial of the Monte Carlo software to allow professionals to run their own simulations.\u003c\/p\u003e \u003cp\u003eGuiding licensing executives through world-class techniques on how to transform a technology opportunity into a reason-based valuation and consummated license\/sale, \u003ci\u003eValuation and Dealmaking of Technology-Based Intellectual Property\u003c\/i\u003e provides the critical guidance licensing professionals need.\u003c\/p\u003e  \u003cb\u003eUpdated, expanded—and proven—methods to account for risk and assign value, from Richard Razgaitis\u003c\/b\u003e  \u003cp\u003eDevelopers of cutting-edge technologies are confronted with compelling questions years before their technologies even reach the marketplace: To develop or not to develop? To license or not to license? What price will be a true reflection of the product's value from the buyer's and seller's points of view?\u003c\/p\u003e \u003cp\u003eIn \u003ci\u003eValuation and Dealmaking of Technology-Based Intellectual Property\u003c\/i\u003e, author Richard Razgaitis answers these questions and more, offering updated and complete coverage of the issues, methods, and art of valuing and pricing \"early-stage\" technologies.\u003c\/p\u003e \u003cp\u003eThis guide presents three core technology commercialization business processes: opportunity Discovery, Valuation, and Dealmaking, or Technology Licensing D-V-D, authoritatively covering topics including:\u003c\/p\u003e \u003cul\u003e \u003cli\u003eRisk and Reward\u003c\/li\u003e \u003cli\u003e \u003cp\u003eTaxonomy of Technology Licensing\u003c\/p\u003e \u003c\/li\u003e \u003cli\u003e \u003cp\u003ePrinciple Based Valuation Methods (and Tools)\u003c\/p\u003e \u003c\/li\u003e \u003cli\u003e \u003cp\u003eMonte Carlo and Real Options as an Advanced Valuation Method\u003c\/p\u003e \u003c\/li\u003e \u003cli\u003e \u003cp\u003eIdentifying and Prioritizing Technology Opportunities\u003c\/p\u003e \u003c\/li\u003e \u003cli\u003e \u003cp\u003eTerm Sheets and Deal Teams for Negotiation Readiness and Dealmaking\u003c\/p\u003e \u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eDrawing upon over thirty years of experience in developing technology-based intellectual property, the author thoroughly examines these challenging business processes from a practical, experienced-based perspective. An accompanying Web site, www.razgaitis.com, provides spreadsheets used in this book and a free trial of the Monte Carlo software to allow you to run your own simulations.\u003c\/p\u003e \u003cp\u003ePresenting six proven valuation methods as well as a series of case studies showing them in action, \u003ci\u003eValuation and Dealmaking of Technology-Based Intellectual Property\u003c\/i\u003e is an essential addition to every technology\/R\u0026amp;D manager, M\u0026amp;A dealmaker, and IP lawyer's professional library.\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47990444097765,"sku":"NP9780470193334","price":168.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9780470193334.jpg?v=1761787854","url":"https:\/\/k12savings.com\/products\/valuation-and-dealmaking-of-technology-based-intellectual-property-isbn-9780470193334","provider":"K12savings","version":"1.0","type":"link"}