How an intellectual property audit turned up valuable overlooked assets.
True story. Company A purchased Company B, but Company B did not fully disclose all of its intellectual property assets during due diligence. The sale closed and a subsequent intellectual property audit revealed several valuable domain names registered to Company B. A review of applicable employment agreements revealed that these domain names, whether disclosed or not, were now the legal property of Company A. The domain names were then transferred to Company A (a process which is much more complicated than it ought to be, but I digress) and eventually sold to Company C for approximately 25% of the purchase price of Company B. Company A got a bargain, Company B left money on the table. For more information on intellectual property audits, see “Intellectual Property Audit.”