Michael D. Moberly, Principal, Founder kpstrat and ‘Business Intangible Asset Blog’
In this post I draw readers attention to some (accounting) conventions which influence…
- how – ways business leaders, management teams, boards, and investors conceive – frame the valuation and duration of proprietarily developed + held intangible assets, ala business things intangible.
There should be no argument among business leaders, et al, that today, and for the foreseeable future, upwards of 70-80+% of most business’ valuation, competitiveness, revenue generation capability, brand, and sustainable – future wealth creation potential,
- lie in – emerge directly from intangible (non-physical) assets, and less so from tangible (physical) assets, irrespective of sector, stage, size, products, service, or location…
- when the former are developed at the right time, safeguarded in the right way, applied at the right cost, and treated as ‘mission essential’.
Many conventional interpretations of business things intangible…
- do not portray same as (business) ‘mission essential’.
- nor recognize their on-going contributions to valuation, competitiveness, revenue generation, operating culture, and
- abbreviate their value-materiality (life) cycle.
Recognizing, appreciating, and distinguishing the contributory roles + value adds of business things intangible is pretty darn important to business development, growth, valuation, competitiveness, revenue generation, and strategic planning, as it is to…
- balance sheets, financial statements, transaction due diligence, and risk mitigation.
Dismissing – overlooking business’s ‘mission essential’ intangible can render reputation + competitiveness of brands, products, and services more fragile, less resilient, and vulnerable to arrays of risk.
Business leaders, management teams, boards, and investors who exhibit (convention laden) indifference to – dismissiveness of the array of beneficial inputs routinely made/influenced by internally developed + held intangible assets will likely ‘miss opportunities to advance – solidify business – brand valuation, competitiveness, and revenue generation capability.
Conventional interpretations of business things intangible frequently influence how (inhibit, incumber) business leaders, management teams, boards, and investors conceive/frame the relevance, contributions, valuation, and duration (e.g., value-life-materiality cycle) of particular – intangible assets, especially those relied – applied and recognized as ‘mission essential’.
It’s clear (obvious) that many time-honored conventions alluded to here, emerged well before ‘businesses, irrespective of sector, stage, size, or location, became increasingly intangible asset intensive, dependent, and reliant.
Business leaders, management teams, boards, and investors who exhibit (convention laden) indifference to, or dismissiveness of, the array of beneficial inputs – contributions of ‘mission essential’ intangible assets…
- miss opportunities to advance – solidity business – brand valuation, competitiveness, and revenue generation. Thereby, rendering those particular – assets more fragile – vulnerable, and less resilient to risk.
Achieving operational familiarity with business things intangible is a worthy investment for business leaders, management teams, boards, and investors…
- deliver returns for a ‘business management lifetime’ with layers of near term and strategic clarity and examples – rationales related to specific circumstances, stages, and/or transactions where intangible assets are mission essential, in play, and at risk.
Readers who wish to consider more about recognizing – distinguishing – utilizing business things intangible to advance their business interests are encouraged to ‘search’ the ‘Business Intangible Asset Blog and other resources noted at kpstrat.com and contact Mr. Moberly.
The ‘Business Intangible Asset Blog’ is experientially researched, written, and produced by Michael D. Moberly, to provide readers (business leaders, management teams, boards, and investors with reliable perspectives and nuanced insights to distinguish, value, and safeguard business things intangible designated as mission essential.
Readers of this, and other posts, @ Business Intangible Asset Blog’ are-encouraged to offer comments.