Technology & Invention Commercialization Programs
Divesture of proprietary machinery technology
The Situation
A small businessman and inventor, Mr Small, had developed and patented a unique
machine that could provide production efficiency and cost saving benefits
to many businesses. The inventor had been approached by a company that offered
to buy the patents and prototype machinery outright, for a lump-sum payment.
The inventor was unsure as to the suitability of the offer and felt that
the amount being offered "might be too low".
The Challenge
Small, recognizing that the invention could probably be exploited more effectively
by a larger company, wanted to explore other options to either license the
patent and proprietary design, or alternatively to sell it outright. He had
two very different offers from two very different companies, as well as the
option of continuing to produce the product himself for profits on a per
unit basis.
The Solution
Vertex studied the marketplace and gained an appreciation of:
- existing equipment and processes used to accomplish the same tasks as Small's technology,
- the benefits of Small's technology, and
- which businesses would make suitable licensees.
Based on our analysis of this information, we provided Small with several recommendations.
The Result
Acting on our recommendations, Small was able to sell his patent and prototype
equipment to a large multi-national business at a very attractive price and
terms. The deal concluded was much better for Small than the first offer
tabled.
