Investment Due Diligence

Providing investment professionals with a deep and rigorous analysis of business, technology and legal issues critical to their investment holdings.

Red Chalk Group’s investment research and due diligence engagements leverage a rigorous fact-based process to assist principal investment funds with the development, refinement, or validation of an investment thesis. Our efforts focus on framing the opportunity for value creation through deep analysis of the industry landscape, channel discussions within the target’s orbit, assessing competitive dynamics, and evaluating long-term scenarios. We employ a well-honed due diligence process to identify opportunities and risks as well as validate investment theses, ultimately adding value to investors seeking informed deal decisions.

Our investment research engagements focus on technology evaluation, investment idea generation, portfolio/patent/application valuation, and M&A support (e.g., due diligence). We typically address these issues across an industry, within a company and/or its direct competitors, or for a specific technology.

Services Provided:

  • Technology Evaluation
  • Opportunity Identification
  • Due Diligence
  • Industry/Company Analysis
  • Portfolio/Patent/Application Valuation

Technology Evaluation

Red Chalk Group can assist you in your efforts to identify the “winners” for any given technology. Because our efforts focus on core intellectual property assets, we cut through the noise and IR talking points typically involved in secondary research. We identify all related patents and applications, aggregate patents by owner, assess patents for seminality and technical strength – ultimately identifying the short list of technology leaders.

Opportunity Identification

We frequently utilize our technology evaluation capabilities to assist hedge fund, private equity, and venture capital professionals identify those unique, “under the radar” investment opportunities. Many of the firms we have identified have subsequently been acquired explicitly for their patent and application portfolios.

Due Diligence

Protecting your investments is more challenging than ever. Whether it is for an existing investment, merger, or acquisition, we can provide detailed information about the intellectual property of a portfolio company that may affect pricing or other key elements of a proposed transaction. Key components of our due diligence include:

  • Confirmation of intellectual property assets
  • Patent mapping and mapping published applications to technologies and cash flows
  • Analysis of market position and performance relative to key competitors
  • Verification of key inventors and research networks

Industry / Company Analysis

Red Chalk Group has the unique capabilities to identify and evaluate intellectual property portfolios for an entire industry – identifying the “winners” among industry participants – as well as any “concealed” shifts in technology development efforts. For any given company, Red Chalk Group can verify portfolios, map patents to products and revenue streams, and identify the issues associated with current or future litigation, providing you with the detailed knowledge to query and challenge management teams as appropriate.

Portfolio / Patent / Application Valuation

Red Chalk Group augments standard methodologies and techniques with market driven factors to value intellectual property portfolios. Our results are utilized in investment models as well as for specific transactions. As the capital markets create mechanisms for monetizing intellectual property, Red Chalk Group is ready to assist with patent valuation efforts.