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Valuation of Early-Stage Technology – New Rules for Today’s Economy

Location: Your office

Date: Wednesday, August 12, 2009

Time: 1:00pm - 2:30pm ET

Overview

Traditionally there have been many ways to estimate the value of a technology. Today, there are still many ways, but how do you know which method is most appropriate for you?

There are major discrepancies in the final calculations used to value technologies from one method to another. On top of that, financial markets are in turmoil, credit is tight, but interest rates are low.

If we include the level of economic upheaval in our infrastructure, how do you value a technology appropriate to today’s economy? How do you wrap your arms around a figure that is justifiable and expected to endure?

There is an old Wall Street saying, “as GM goes, so goes our economy.” Are all of the old rules obsolete or are there ways to be smarter about how technologies are valued?

To answer these questions and more, Management Roundtable is pleased to offer a special audiosession, Valuation of Early-Stage Technology – New Rules for Today’s Economy, led by technology expert Richard Sheehan, on Wednesday, August 12, 2009 at 1pm ET/10am PT.

In this 90-minute interactive session, he will discuss:

  • Basic valuation types and their differences, including comparable transactions, book value or cost method, 25% rule
  • Valuation models and their relative utility with different types of IP assets and situations
  • Fundamentals such as:
    • Industry Standard Royalty Rates
    • Replacement Cost Method
    • Relief from Royalty Method
    • Income Method
    • Discounted Cash Flow
    • Monte Carlo Simulations
    • Options Pricing Theory (OPT) & Black-Scholes
  • Quick-and-dirty rules of thumb
  • Right -- and wrong -- ways to use comparables
  • Methods to verify and confirm valuation results

Using real-world examples, Sheehan will offer insight into the valuation of early-stage IP and how the economic downturn has affected – and will continue to affect -- negotiations. He will also answer your specific valuation questions.

This session is ideal for CTOs, R&D managers, technology developers, business development managers, and innovation leaders. Teams may listen together for the same low fee - cost is per phone line, attendance unlimited.

Takeaways:

  1. Access to slides used during the session via webinar technology
  2. Your questions answered directly by an expert during the session
  3. Access to synchronized Windows Media file of slides and audio after the session

 

Session Leaders

 

 

 

Richard Sheehan

Richard Sheehan
President
Technology Resource of the Southeast


Richard Sheehan is President of Technology Resource of the Southeast, a regional service provider of third party assessment, analysis, and valuation of early stage technologies and new products. Mr. Sheehan has thirty years' experience in product development, commercialization and licensing, specializing in early stage and emerging technologies. His firm also assists start-ups by confirming and validating business plans as an objective third party. Mr. Sheehan holds 10 U.S. and 2 worldwide patents, and the firm is one of only 25 companies that have been certified and licensed to use the Black-Scholes methodology for early-stage technology valuations -- a model based on a mathematical formula awarded the Nobel Prize in Economics in 1997. Mr. Sheehan has served as the CEO of three successful companies, and Technology Resource has been in business for 10 years serving universities, government agencies, commercial entities, and start-up companies.

What you will learn

 

 

 

In this 90-minute interactive session, you will learn:

  • Basic valuation types and their differences, including comparable transactions, book value or cost method, 25% rule
  • Valuation models and their relative utility with different types of IP assets and situations
  • Fundamentals such as:
    • Industry Standard Royalty Rates
    • Replacement Cost Method
    • Relief from Royalty Method
    • Income Method
    • Discounted Cash Flow
    • Monte Carlo Simulations
    • Options Pricing Theory (OPT) & Black-Scholes
  • Quick-and-dirty rules of thumb
  • Right -- and wrong -- ways to use comparables
  • Methods to verify and confirm valuation results