Rule of Thumb for IP in M&A

According to Adam Liberman, "The extent to which the price proposed to be paid for the relevant acquisition exceeds the value of net tangible assets should be adopted as a 'rule of thumb' for determining the importance of intellectual property to that transaction. The greater the disparity between the proposed price and the value of net tangible assets, the more likely intellectual property is to be important to the transaction, and therefore the greater the reason to properly investigate the seller's intellectual property."