M&A gets smarter: how buyers and founders turn IP into a growth lever

Once an afterthought in most transactions – except in pure technology acquisitions – intellectual property (IP) is moving to the centre of deal-making. Software, data, and AI shape nearly every product and service, and the know-how, data sets, and IP rights behind them increasingly determine whether a deal delivers its growth story.

This trend matters as much to founders as it does to corporate M&A teams. If you plan to use acquisitions to scale – or be acquired yourself – the way you create, manage, and use IP can add or erase millions in value. Investors are also pricing funding rounds and exits more directly on the strength and clarity of IP positions.

Spot the IP-intensive deal early

Not every deal hinges on IP, but many do – especially those involving digital technologies. Connected products, data-rich services, and AI-driven business models are clear indicators. When these signals appear, IP should be treated as a core element of deal design, not a clean-up task after signing. As buy-side dealmakers sharpen their IP playbooks, sell-side founders must keep pace.

Founders: fix the basics before diligence

Buyers have little appetite for untangling messy code, disputed licences, or unclear ownership of data, know-how, or IP. Founders who clarify where their differentiation lies – and can prove ownership or control – build trust in the company’s ability to scale and deliver synergies post-deal. The reward is a smoother diligence process, fewer last-minute concessions, and a valuation that reflects the real strength of the technology.

Buyers: avoid hidden liabilities

Post-closing IP surprises can wipe out deal value – whether it's patent portfolios that don’t cover the product, missing data sets or usage rights, or unclear ownership of key know-how. Smart acquirers develop an “IP narrative” early: a clear link between critical assets and the commercial logic of the deal that keeps legal, technical, and business teams aligned. But that narrative only needs to be built when IP matters. Many deal teams start with a quick IP risk scan. If red flags surface, they launch a deeper workstream in parallel while broader diligence continues. This protects value where exposure is high, while keeping speed.

Don’t forget the IP team

A solid IP strategy means little without the capability to execute it. Many fast-growing companies operate with a single IP specialist, or none at all. To be deal-ready, companies need expert support in both IP strategy and execution at least 12–18 months ahead of a transaction.

Deals that overlook how the IP function will be staffed, structured, and scaled often face issues post-close. Leading acquirers define the future IP organisation upfront. Strong sellers showcase the talent, processes and portfolios that will enable the new or combined business to thrive.

The bottom line

IP is no longer a checkbox after signing. It’s a strategic lever to secure access, accelerate growth and lock in advantage. Founders who treat it that way from the start will command stronger valuations. Buyers who embed IP into their playbook will close faster and deliver more value. In today’s data-driven, AI-enabled world, that may be the difference between a good deal and a great one.

Robin is Head of Strategy & Growth at Konsert Strategy & IP, a Rouse company

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