INTELLECTUAL PROPERTY SECURITIZATION IBD

Sinopse

Funding corporates with high expenditures for reseach and development and an assetside that is hence characterized by a high portion of intangible assets is one of themost challenging disciplines in corporate finance. Due to the still existing lack ofpragmatic and sophisticated evaluation methods for intellectual property, these corporates?dependence on bank lending does not seem to end in the nearer term.Starting with the Bowie Bonds in 1997, securitization of intellectual property as a potentialfunding alternative appeared on the scene. Capital market investors now havethe opportunity to diversify their portfolios with unique investments such as royaltiesfrom sales of an AIDS drug, revenues from James Brown?s music or even the successof the latest Hollywood blockbusters. Ten years after the first transaction was closed,today most of these corporates still depend on bank lending.Based on an introduction of general challenges of corporate funding, the authorAlexander C. Kirsch provides a broad overview of the world of intellectual property.Extensive market research and practical examples help to explain benefits and drawbacksof the securitization instrument in that context. To support feasibility of securitizationin daily business practice, the author introduces a potential scoring tool forthe identification of eligible intellectual property assets and he explains key elementsand challenges in the structuring of such a transaction.Due to the topic?s novelty, this book is of interest for a broad range of readers, rangingfrom corporate finance managers over bankers to general economists. The booktakes the perspective of a CFO in an intellectual property intense industry and it canhence be used as a comprehensive guideline for the analysis and execution of an intellectualproperty securitization.