Some entities will have IP rights as a key element and tend to invest capital heavily in the creation of their IP rights. A portfolio of the company’s intellectual property rights, if properly managed and maintained can help in the decision making process for the transacting entities. An IP audit provides a basis for assessing the risk and value of the relevant IP assets in a proposed transaction. This allows entities to evaluate their negotiating power and quantify the value of the proposed deal. The outcome of an IP audit could lead to a significant increase or decrease in the value of the acquired company or the resulting merged entity.