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Guide · Transactions · 9 min
Software and IP transactions
Connect legal ownership, DEMPE functions, risk control, funding and the selected pricing approach.
01
Map contribution and control
Legal ownership is one input. Identify which entities perform and control the development, enhancement, maintenance, protection and exploitation functions, and who controls the associated risks.
02
Analyse the transaction
- Define the IP, rights transferred and relevant territories.
- Review development arrangements, funding and decision rights.
- Assess internal licence or service comparables.
- Consider valuation, profit split or other methods where one-sided testing is unreliable.
- Document assumptions for forecasts, useful life and market uncertainty.
03
Keep evidence current
Software operating models change quickly. Update the functional record when development teams, product ownership, market strategy or risk control moves between entities.