It’ necessary to negotiate pre-post transaction covenants to not assess and monitor vulnerabilities and risks that can adversely affect-impair intangible asset value and stability.
Intangible asset due diligence
Identifying, unraveling, and assessing IA’s contributory and collaborative value roles for companies.
Intangible asset due diligence is not an exercise that is useful only after a company suspects or experiences the materialization of a risk, i.e., misappropriation, infringement, etc., or is notified they are a defendant to a lawsuit!
Transaction management teams should possess sufficient operational familiarity with intangible assets to identify, unravel, and make judgments regarding their status, stability, fragility, contributory value cycle, and sustainability.
A reality, whether its influenced by this recession or not, is that large scale layoffs, terminations, and the sheer unavailability of gainful employment, irrespective of severance package, advance notice, unemployment benefits, or opportunity for ‘call back’ will produce disgruntled employees with an elevated sense of (company, employer) disloyalty.
Selecting the best individual or firm to conduct intangible asset due diligence is critical to transaction success!