At Legal500’s GC Summit Vietnam 2023 event, ASL LAW Firm and other large law firms in Vietnam and around the world participated in a discussion on the topic “Intellectual property consideration and issues on M&A in Vietnam” presented by ASL LAW Firm senior lawyer.
The main content of the presentation included the following sections: “Intellectual property assets in M&A transactions”, “Representations and warranties related intellectual property”, “Valuing intellectual property in M&A”, “Assignment and change of control issues in M&A”, “Cross-border challenges” and “Lessons on intellectual property management in M&A”
At the Conference, ASL LAW Firm’s Senior Partner introduced about the role of intellectual property in valuing ‘enterprise value’ in M&A transactions, in which, legal due diligence plays an important role.
According to international reports, currently intellectual property accounts for a large proportion of total enterprise value while appraising M&A deals. Johnson & Johnson accounted for 87.9%, Proctor & Gamble with 88.5%, and Yahoo with 98.9%. For S&P 500 companies, this ratio has increased over the years, from 17% in 1975 to now 90% in 2020.
Next, the speaker analyzed issues related to representations and warranties in intellectual property, difficult issues in the process of valuing intellectual property in M&A, issues of assignment and change in control, management in M&A.
Appropriate intellectual property valuation methods include:
- Cost Method
- Income Method
- Market Method
- The Relief from Royalty Method
At the presentation, ASL LAW Firm explained the nature of each method and why when doing an M&A deal, the above methods should be performed by an experienced and qualified asset valuation professional to avoid roundabout, confusing and complicated procedures that can lead to damage to the interests of intellectual property rights holders which can be avoided in the first place.
Another key issue presented at the discussion was the cross-border difficulties faced by M&A enterprises, which drew interests from many guests at the event, including 4 main difficulties and challenges above.
Finally, ASL LAW Firm summarized lessons on intellectual property management in M&A.
GC Summit Vietnam 2023 is one of the top legal conferences in Vietnam and internationally. ASL LAW Firm is pleased to join and honored to become a sponsor, speaker at the event. The team of lawyers attending the event received a lot of useful knowledge and experience from other leading legal experts and lawyers attending the event from Vietnam and internationally.
In the future, ASL LAW Firm will continue to attend similar events with the aim of expanding connections with many other lawyers and law firms to be able to provide clients with the best legal service possible.