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Rock Star Suicides and Patent Apportionment

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Solo performing rock starts are much more likely to die prematurely than rock stars that are members of a band. The reason is solo performers are more likely to engage in destructive behavior (e.g. drug and alcohol abuse) than members of a band.

According to research published in the British journal BMJ Open, solo rock star performers were about twice as likely to die earlier than expected (that is, earlier than the average for their demographic category) as members of a band. Among North American solo stars, nearly 23 percent died before their time, compared to just over 10 percent of band members. Among Europeans, the figures were 9.8 percent for solo stars and 5.4 percent for members of a band.

I have been told by music promoters that being an up-and-coming rock star is a solitary and volatile existence. One day you are waiting for a major music contract to come through, the next day a concert tour is canceled. Solo performers do not have the support system to see them through the peaks and troughs that group performers have.

So, what does any of this have to do with patent apportionment?

The life of inventors / early-stage entrepreneurs is similar to musicians in terms of the enormous volatility of business prospects and emotional roller-coaster rides. One day you talk to an inventor and he is on top of the world because he expects to receive a research sponsor. The next day, you are concerned that he might hurt himself as he is extremely depressed that a competing researcher won coveted media exposure.

So, what is the connection with patent apportionment?

Well, let’s say that you believe an emerging company is valued at $100. This young company only has two assets – founders and patents. You must allocate the $100 valuation between the two asset classes. The more value assigned to the founders, the less can be assigned to the patents (and visa versa).

So, all things being equal, I award more value to founders when there are two or three founders than when there is only one founder. In addition to the risks associated with solo inventors (as discussed above), there is simply too much work to do for one person at an emerging company.
More than three founders at a start-up company is just too many.

So, the number of founders is one issue that I consider when apportioning company value between founders and patents.

David Wanetick - Managing Director

David Wanetick is a Managing Director at Merit Investment Bank. David is a world-renowned patent valuation expert. He developed and runs the Certified Patent Valuation Analyst designation. He is the author of six books including Business Model Validation: What Makes Business Models Work?, The Strategic Negotiator: A Manual for Negotiating at the Elite Level and Solution Nation: One Nation is Disproportionately Responding to the World’s Most Intractable Problems. He may be contacted at david.wanetick@meritinvestmentbank.com.

Merit Investment Bank, a leading middle market investment bank, with a specialization in building products, is honored to have served as exclusive advisor to VaproShield (“VaproShield”) in its sale to (Muncaster Capital.)

by: Merit Investment Bank

SEATTLE – October 31, 2025 – PR.com – Merit Investment Bank (“Merit”), a leading middle-market investment bank with deep expertise in the building products and construction materials sector, is pleased to announce that it served as the exclusive financial advisor to VaproShield, a premier manufacturer of high-performance air and water barrier systems, in its sale to Muncaster Capital, a privately held investment company based in Texas.

This strategic transaction represents a significant milestone for VaproShield, a recognized innovator in the building-envelope industry. For more than two decades, the company has pioneered the design and manufacture of high-performance, vapor-permeable air barrier (AB) and water-resistive barrier (WRB) membranes and accessories. Through its commitment to research, sustainability, and customer-focused innovation, VaproShield has become a trusted partner to architects, builders, and developers seeking to enhance energy efficiency, moisture control, and long-term building performance.

“The sale of VaproShield shows what’s possible when visionary founders create real value and plan strategically for an exceptional exit,” said Craig Dickens, Chairman of Merit Investment Bank. “We were honored to help align the company with the right partner, culture, and capital for its next stage of growth. This milestone reflects years of innovation, discipline, and thoughtful preparation leading to an outstanding outcome.”

The acquisition by Muncaster Capital, am ESOP, will provide VaproShield with additional resources and strategic backing to expand operations, accelerate innovation, and strengthen its presence in both domestic and international markets. Muncaster’s long-term investment philosophy aligns closely with Vaproshield’s mission to deliver environmentally responsible, high-performance solutions to the construction industry.

“VaproShield has built an exceptional brand through innovation, sustainability, and performance,” added Chris Barnes, Managing Director at Merit Investment Bank. “It was a privilege to advise such a forward-thinking team whose commitment to excellence andcustomer trust has made them industry leaders. This transaction delivers a strong outcome for shareholders and positions VaproShield for its next phase of growth.”

Legal counsel for the company was provided by Holland & Knight LLP. Merit extends its appreciation to Stephen McKay and the firm’s M&A team for their seasoned legal guidance and support throughout the transaction, ensuring a smooth and efficient closing process.

The company was also advised by Baker Tilly US, LLP. Merit acknowledges Preston Smith, Director – Transaction Advisory, and Michael Hurst, Partner – Tax, for their expert guidance and transactional support. Their technical insight and professionalism were instrumental in achieving a successful closing.

About the Buyer

Muncaster Capital of Texas, Inc. is a privately held holding company based in Ennis, Texas, primarily associated with the building materials and protective coatings industry. Established in 1986, it serves as the parent company for Polyguard Products, a leading manufacturer of high-performance barrier systems, air and moisture membranes, and protective coatings used in construction and infrastructure projects.

Muncaster Capital oversees operations focused on innovation, sustainability, and long-term business growth within the building-envelope sector. As a mid-sized, family-owned enterprise, it plays a strategic role in managing assets, guiding corporate development, and supporting Polyguard’s mission to deliver durable, energy-efficient solutions to the construction industry.

About Merit Investment Bank

Merit Investment Bank is a leading boutique investment bank focused on serving founder/family-owned middle-market, technology-forward companies. The firm principally executes sell-side M&A, as well transactions with specific emphasis on the building products technology, infrstructure, consumer, and manufacturing/distribution/industry 4.0 sectors.

In addition, Merit offers services including buy-side M&A debt and equity capital raises, restructuring advisory, business valuations, and project financing.

Securities offered through Finalis Securities LLC, Member FINRA/SIPC. Merit Investment Bank and Finalis Securities LLC are separate, unaffiliated entities

Contact:

Craig Dickens, Chairman

Merit Investment Bank

Craig.Dickens@MeritInvestmentBank.com

253-370-8893

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