Context
A US-domiciled multinational mining company was negotiating a joint venture with a small-cap Australian miner to develop a new metals processing technology. At formation the JV would hold no physical assets. Both parties were contributing patents, trade secrets and mineral rights, and the proposed 1/3 to 2/3 ownership structure required a balancing payment reflecting the relative value of the contributed assets.
What we did
- Valued each party’s contributed intangible assets using the project’s underlying financial model
- Assessed the economic contribution of patents, trade secrets and mineral rights to projected JV cash flows
- Determined the balancing payment required to align asset value with the proposed ownership structure
Impact
The client entered the JV knowing the equity split matched what each side contributed, and that it was not overpaying.