Virtually every mid-market company is looking for creative ways to generate cash flow, whether it be capital raises or debt. Most of those companies also envision a major liquidity event on the horizon. CEOs and CFOs often focus on sales (projections or receivables) as their most bankable assets. What is most often overlooked, however, is the value of intellectual property (IP) assets to both short-term and long-term business goals.

In the modern business environment, companies in almost every market sector already possess protectable intellectual property—incredibly valuable intangible assets. But those IP assets must be identified and protected to maximize value. When done correctly, a strong IP position woos investors, functions as collateral and, in many cases, becomes a key asset for sellers. However, even for mid-market companies with robust sales and strong IP portfolios, failing to pay attention to data privacy, data security, and information technology practices can stop a deal dead in its tracks. Special care is a must.

What Really Is Intellectual Property?