The Sum of the Parts

You probably learned the word “arbitrage” in the Julia Roberts/Richard Gere film “Pretty Woman.” They gave quite a detailed explanation of how the sum of the parts, in a business, is sometimes worth more than the whole. Under certain circumstances, this might be an option for you – selling off inventory, intellectual property or patents, and real property, all to different buyers. It takes longer, is more complicated, your legal bills will be appreciably higher, but if you have the luxury of time, it might be worth considering.

Sometimes owners overlook the fact that they may have valuable intellectual property (or “IP”) in-house, and this has a value, to someone, somewhere. Maybe you’ve developed proprietary software relevant to your industry? Brand names or trademarks? A patent on devices?

It all has value.

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