Today, IA intensive-dependent businesses are rapidly becoming a managerial and operational norms.
Monitoring intangible assets
It’s important to recognize that merely because a deal or transaction has progressed to the due diligence stage, there is absolutely no guarantee the projected values, synergies, and competitive advantages the targeted intangible assets are projected to bring will sustain those projections.
The key to managing and overseeing a company’s intangible assets is the ability to sustain control, use, ownership, and monitor the assets’ value and materiality.
The value of most company’s intangible asset far exceeds the value of their tangible assets. This economic fact – business reality clearly establishes the need for company management teams to develop in-house expertise and best practices regarding the utilization of intangible assets.
Execution of key intangible asset management techniques is the key company boards and management teams accruing economic benefits, competitive advantages, or efficiencies flowing to their company from their intangibles.
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.