Valuation of material technology patents to determine stalking horse bid

CRA was retained by the venture arm of an international specialty chemicals company to assess the going concern business value and liquidation value of the patent portfolio owned by a financially distressed portfolio company that had developed novel flexible conductive materials for use in OLED and photovoltaic devices. CRA used Discounted Cash Flow and Market Multiples approaches to value the going concern of the portfolio company, and the portfolio sales multiples and relief from royalty approaches to determine the liquidation value of the subject patent portfolio.  Our results were used in determining a stalking horse bid for the portfolio company in subsequent Chapter 11 proceedings.