Identifying companies for M&A/investment target utilization map
Using the AR technology field as an example, we provide contents for finding M&A/investing companies using PatentPia GoldenCompass. If you click on the chain(link) marks that are attached to each item in the above utilization map, the example page will open in a new window.
Importance of identifying M&A/investing company targets from a patent view
There are so many factors that go into the identification, review, and execution of technology companies for M&A and investing companies. The most objective, and virtually the only, comparative data on technology companies is patent data.
A small to mid-sized technology company may have a good patent portfolio, but it doesn't really represent its true value in the marketplace. However, if a large/ global company with market leadership or market dominance owns/leverages the patent portfolio of the M&A/investing company, the i) disruptive power, ii) impact, iii) value owned/leveraged, iv) market dominance , v) bargaining power, etc., becomes incomparably higher.
Views on recommending M&A/investing companies
Companies specialized in a specific field vs. rapidly growing companies
GoldenCompass recommends specialized companies that are focused on a specific technology field as primary candidates for M&A/investing purposes. Example link 1, Example link 2
On the other hand, rapidly growing companies in a particular technology field can also be good candidates. Example link 1, Example link 2
Companies with high patent relevance
For a global/large company with M&A/investment potential, it is easy to identify domestic and foreign companies with high patent dependency/relatedness to the company's investment/M&A interested technology field. Dependency/relevance can be measured by i) high or rapidly growing forward citations, ii) high or rapidly growing rejecting subsequent patents.
Companies increasing their investments in technology vs. companies in trouble
On the other hand, for a given technology field, i) companies that are increasing their technology investments, and ii) companies that are patently distressed can be discovered with just one click. For a given technology field, companies that are increasing their technology investments are i) rapidly growing companies in the technology field, ii) patent purchase companies/licensing companies(Example 1, Example 2), iii) companies with increasing No. of self-forward citations(Example 1, Example 2). Companies in distress include: i) companies that have been litigated as defendants, and ii) companies that have been petitioning for or lost a judgment. For these companies, we can identify and make recommendations to specialized companies in their technology field.
Utilization in view of data
The data services provided by GoldenCompass by technology field can be in various forms: i) provided as a web UI, ii) provided as an API, and iii) provided as bulk data.
Utilizing data through APIs
Through APIs, HR tech companies will be able to combine data services such as i) technology input → company list data output, ii) individual company input → company-specific analysis data output, etc. into their platform/service. It can also be utilized to develop technology/R&D manpower sourcing and verification services specialized in the technology field.
Linking and integrating your own DB with technology company data
Through bulk data, you can link or integrate your own DB and technology company data.
Technology company DB mining/AI service
By mining bulk data, you can derive business insights specific to your company and its clients.
On the other hand, you can also develop holistic, interactive AI services that are specific to your technology data. For an example of an interactive AI service, please refer to patentpiagpt.patentpia.com. You can query patentpiagpt.patentpia.com with setence of ‘Find me companies specialized in the field of quantum cryptography’.
See also
Analysis of technology fields
GoldenCompass provides various analysis contents to understand the patent landscape for a specific technology field, including i) technology trends and market leaders, ii) technology investment events such as patent purchases, iii) dispute/risk events such as patent litigation or trials, and iv) rising or new appearing keywords in the field. Through various analysis contents on technology fields, you can evaluate the promise of a specific technology field.
In the page below, you can check the analysis contents from the menu names of 1~2 depth.
A condition of a promising company = Relationships with market leaders
A promising technology company is not determined by the technology itself: a technology that is ignored by the market, has no market, and takes a lot of time for the market to open, is not a promising technology in the real world.
Therefore, companies with technologies that have a market, or have the power to shape the market, and that have i) alignment, ii) complementarity/complementarity, and iii) precedence with the new investment areas of market leaders or global companies are the ones with promising technologies.
GoldenCompass provides the following data for the analysis of i) congruence, ii) complementarity/supplementarity, and iii) precedence between M&A/investing companies and market leaders.
First, it provides keywords. For all companies (including target companies and market leader companies), we provide keywords contained in patents related to field of that company or its specific technology field as i) rapidly growing keywords, ii) new appearing keywords, iii) highly specialized keywords (keywords that are particularly frequent only in the patents of that company), etc. For a detailed example, follow this link.
With a company-specific keyword list, you can analyze the keyword match, complementarity/complementarity between your target company and the market leader.
Second, for each keyword, we provide the date the keyword first appeared in the company or its technology field (first appearance date) and the date it appeared most recently (most recent appearance date). This allows you to see temporal precedence.
New/Investing field singnal of market leader companies
Market leaders or global companies worry the most about their future, receive the most consulting, and spend the most on predicting and hedging future risks. As a result of this worrying, consulting, and risk prediction, market leaders or global companies execute: i) M&A/investments in technology companies, ii) patent purchases (with open innovation), and iii) R&D rebalancing. Therefore, it is necessary to discover promising companies in the future, centering on i) fields of M&A/investing companies, ii) fields related to purchased patents, and iii) fields of surge in R&D investments (= fields of surge in domestic/international patent applications), which are closely related to the new investment areas of market leaders or global companies.
GoldenCompass provides various analyses of market leaders or specific technology fields of market leaders.
Falling business segments of large/global companies
Market conditions, clients' needs, and consumer preferences change all too quickly. As a result, market leaders, global companies, and conglomerates optimize their business portfolios on a constant basis. As a result, it is difficult for them to fully fund R&D in the business segments that are being rebalanced/declining investments. Reduced investments in R&D are signaled by i) a sharp decline in domestic and patent applications, and ii) a sharp decline in self forward citations.
Falling business segments of large/global companies make good acquisition targets for mid-sized companies or companies from other nations with deep pockets, as there is a captive market for the business segment and there is no need to invest in (new) market development costs.