One thing I see overlooked by business owners who are considering an exit in the next few years is Intellectual Property protection.
IP protection is not reserved for the big corporates or limited to specific sectors, like tech. Do you want to risk the value and status of your IP when it comes to the future exit negotiations for your business?
1️⃣ Run an audit – to understand what is already protected and prioritise what needs protection.
2️⃣ Innovation – although patents might be needed to secure exclusive rights to manufacture or licence your invention, that’s only half the battle. Make sure you’re monitoring the landscape and aware of how to manage any infringements.
3️⃣ Branding – a strong brand is a valuable asset. So make sure you have trademarks in place and understand what material is subject to copyright.
4️⃣ Trade Secrets – protect sensitive information, such as customer lists or unique business processes, by implementing strict confidentiality measures. I’ve seen many unscrupulous businesses seek to uncover trade secrets from competitors who are ‘up for sale’ by appearing to be engaged potential buyers and even signing NDAs. Beware of these sorts of characters on fishing expeditions.
A well-protected IP portfolio will enhance the value of your business and give you leverage during the exit negotiation process.