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Value US Market Opportunity for Business Relating to Lapsed Patents

Client: Artemi

Brief

Artemi Ltd. produced a patented space saving used in the apparel industry - the Artemi hook. The patents, however, had lapsed in the US and this was now being exploited by another party. Artemi Ltd. required Intangible Business to value the market opportunity in the US for its business to support its claim relating to the lapse of patents in the US.

Approach

The size and growth of the US market had to be determined. Qualitative and quantitative market research was therefore carried out in key segments, key customers and drivers of demand. The findings were then evaluated to help ascertain the potential market for both Artemi's space saving device and the impact competition would have on the business and opportunity. With the lapse of the patent, the opportunity for competition to enter the market was a big threat. This threat, and risks associated with it, was analysed to help determine the optimum strategy for ongoing business continuation. The achievements and gain of existing customers such as Walmart, Kmart and Gap were assessed against the market opportunity and likely penetration, to back up overall assumptions on forecast fee income. These were used as the basis for a discounted cash flow business opportunity valuation.

Result

A report was prepared giving an in depth research and analysis supporting a valuation of the market opportunity. This played its part in helping to settle the claim.