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Methods
One of the most important aspects of licensing and
partnering has to do with the structuring of terms.
You may have the greatest product but without a reliable,
cogent, and dedicated sales channel you might as well open a
lemonade stand. Conversely, you may possess a smart
and entrenched sales force with outstanding contacts in the
industry, but without a good product to sell you're treading
water. Detailed, transparent, accurate, and
user-friendly modeling of financial deal terms is extremely
critical if you want to maximize the value of your firm.
SG Systems can deliver exceedingly detailed
models that accurately reflect all aspects of the deal terms
and will easily allow on-the-fly modifications to the deal
terms that propagate through the entire modeling system.
Upfront payments, numerous milestone payments, options, and
various royalty rates with multiple threshold points are
part of the deal term modeling that SG Systems can put
together and will not only show you what the deal is worth,
but will show how much the deal is worth to your partner.
SG Systems will pour over all of the licensing agreements to
make sure no rock is left unturned and no detail, however
simple or complex, is left out of the modeling system.
Cash flow models are utilized extensively
along with NPV Split models to illustrate how a licensing
deal or partnership financially affects all involved
companies.
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