Mergers and Acquisitions Due Diligence: Seven Critical Steps You Can't Afford to Overlook - II

Litigious companies sometimes target other small companies for infringement

, but to wait until someone with deep pockets acquires them. It might be that a lawsuit against the small company would not be worthwhile because collecting the damages a lawsuit would yield would bankrupt the defendant. The practice of targeting companies is a growing trend, driven by non-practicing entities. Many of these companies acquire IP for the sole purpose of patent infringement litigation and do not produce or sell anything, instead relying solely on litigation damages for revenue.

Mergers and Acquisitions Due Diligence: Seven Critical Steps You Can't Afford to Overlook - II

By: Tyron Stading

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