We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Aon's (AON) Solution to Fetch Higher Value for IP Portfolio
Read MoreHide Full Article
Aon plc (AON - Free Report) recently announced the introduction of Quality of Intellectual Property (QoIP) Solution, which can now be availed in the market. Shares of the company have gained 0.7% on Nov 11.
The solution intends to primarily help companies in assessing the quality of their IP portfolio in the course of M&A or financing transactions. This, in turn, is likely to fetch improved transaction value for the companies’ IP portfolios in the M&A and capital markets.
QoIP functions by generating a report, which classifies the IP portfolio with enhanced accuracy, identifies its contribution to the company’s revenue streams and measures the IP portfolio’s quality against other competitor portfolios.
In fact, the report assists in fetching full value of the IP portfolio, which will enable the companies to position themselves better in the M&A market during sale transactions and financing situations that also comprise venture capital and private equity investments.
Moreover, the new solution has already proved its credibility in the market by assisting Victory Innovations, which utilized the solution while divesting a major stake to The Carlyle Group in September. Management at Victory Innovations emphasized on the usefulness of the report produced by QoIP, which has enhanced its sale process and generated higher value for its shareholders.
Shares of this Zacks Rank #3 (Hold) company have gained 3.3% in a year compared with the industry’s growth of 6%.
Furthermore, the launch of this solution seems to be time opportune since most of the companies that have made substantial investments in the IP are not able to effectively correlate the importance of IP as a component of their enterprise value. As a result, the IP is assigned as a mere confirmatory due diligence item in majority of the transactions and that too at the latter stages of the deal when value and terms have already been agreed upon. This often leads to incorrect valuation of companies during sales and financing transactions.
QoIP definitely comes as a boon for IP-intensive companies and also addresses the dire need for solutions required to realize higher value of the IP portfolio. The reason can be attributed to the fact that intangible assets, under which IP comes, accounts for around 85% of the total asset value in the S&P 500.
Also, this is not the first time that Aon has come up with an IP solution. Last month, it introduced Intellectual Property (IP) Capital Market Solution through which IP assets can be used as collateral in an insurance-enabled debt structure thereby ensuring growth capital.
Apart from rolling out new solutions, we believe the company’s expansions through buyouts and collaborations, divestitures and a solid financial position have positioned it well for long-term growth.
eHealth, Arthur J. Gallagher and Brown & Brown have a trailing four-quarter earnings surprise of 83.27%, 15.79% and 13.91%, on average, respectively.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.3% per year.
These 7 were selected because of their superior potential for immediate breakout.
Image: Bigstock
Aon's (AON) Solution to Fetch Higher Value for IP Portfolio
Aon plc (AON - Free Report) recently announced the introduction of Quality of Intellectual Property (QoIP) Solution, which can now be availed in the market. Shares of the company have gained 0.7% on Nov 11.
The solution intends to primarily help companies in assessing the quality of their IP portfolio in the course of M&A or financing transactions. This, in turn, is likely to fetch improved transaction value for the companies’ IP portfolios in the M&A and capital markets.
QoIP functions by generating a report, which classifies the IP portfolio with enhanced accuracy, identifies its contribution to the company’s revenue streams and measures the IP portfolio’s quality against other competitor portfolios.
In fact, the report assists in fetching full value of the IP portfolio, which will enable the companies to position themselves better in the M&A market during sale transactions and financing situations that also comprise venture capital and private equity investments.
Moreover, the new solution has already proved its credibility in the market by assisting Victory Innovations, which utilized the solution while divesting a major stake to The Carlyle Group in September. Management at Victory Innovations emphasized on the usefulness of the report produced by QoIP, which has enhanced its sale process and generated higher value for its shareholders.
Shares of this Zacks Rank #3 (Hold) company have gained 3.3% in a year compared with the industry’s growth of 6%.
Furthermore, the launch of this solution seems to be time opportune since most of the companies that have made substantial investments in the IP are not able to effectively correlate the importance of IP as a component of their enterprise value. As a result, the IP is assigned as a mere confirmatory due diligence item in majority of the transactions and that too at the latter stages of the deal when value and terms have already been agreed upon. This often leads to incorrect valuation of companies during sales and financing transactions.
QoIP definitely comes as a boon for IP-intensive companies and also addresses the dire need for solutions required to realize higher value of the IP portfolio. The reason can be attributed to the fact that intangible assets, under which IP comes, accounts for around 85% of the total asset value in the S&P 500.
Also, this is not the first time that Aon has come up with an IP solution. Last month, it introduced Intellectual Property (IP) Capital Market Solution through which IP assets can be used as collateral in an insurance-enabled debt structure thereby ensuring growth capital.
Apart from rolling out new solutions, we believe the company’s expansions through buyouts and collaborations, divestitures and a solid financial position have positioned it well for long-term growth.
Stocks to Consider
Some better-ranked stocks in the same space include eHealth, Inc. (EHTH - Free Report) , Arthur J. Gallagher & Co. (AJG - Free Report) and Brown & Brown, Inc. (BRO - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
eHealth, Arthur J. Gallagher and Brown & Brown have a trailing four-quarter earnings surprise of 83.27%, 15.79% and 13.91%, on average, respectively.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.3% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>