Reputation literally constitutes the overwhelming bulk of most company’s intangible assets which today can account for 65+% of their value, sources of revenue, sustainability, and foundations for future growth, expansion, and wealth creation.
Archives for September 2009
Due diligence management teams must recognize that the control, use, ownership, value, and materiality of targeted (intangible) assets are subject to being compromised, misappropriated, competitive advantages undermined, and/or value eroded if not monitored pre and post transaction.
It’s critical today that due diligence be much more than a confirmatory review of the presence, absence, and/or position of a target’s intangible assets or merely provide decision makers with subjective, snap-shot-in-time estimates.
An increasingly relevant prelude to company – organization strategic planning is conducting an intangible asset assessment.
Franchisors and franchise operation success and profitability may not be driven so much by the licensing of intellectual property as they are driven by the highly individual intangible assets franchisees’ develop!
Management team familiarity and insight regarding the identification and utilization of intangible assets will produce many positive multipiers to a company.