Michael D. Moberly June 19, 2008 (Part two of a two part post.)
In today’s high stakes, nanosecond, winner-take-all global arena of business transactions, it’s important that each party recognize that intangible assets, IP, and (proprietary) competitive advantages will most always be in play, (i.e., part of any deal).
As noted in my June 18th post, a value-based assessment (inventory, audit) of those assets (that also incorporates a ‘business impact analysis) is a worthy step towards enabling and facilitating more secure and profitable transaction outcomes.
The value-based assessment (inventory, audit) I refer to encompasses three primary components:
1. Identifying, sifting through, and unraveling any embedded – intertwined intangibles and competitive advantages relevant to the transaction…
2. Identifying and assessing any under-the-radar risks, threats, and vulnerabilities that can entangle and/or ensnare the assets in costly, time consuming, and momentum stifling disputes or challenges…
3. Assessing the adequacy – effectiveness of any asset safeguards that have been in place (pre-transaction context) relative to protecting, and preserving the assets’ value and usefulness (post-transaction context)…
The value-based assessment can deliver timely and relevant insight to transaction decision makers by:
1. Alerting them to significant vulnerabilities-risks that warrant immediate attention, but yet may be favorably leveraged prior to deal closure…
2. Bringing operational, economic, and strategic clarity to the intangible assets that are in play (relevant to the deal)…
3. Identifying efficient and effecive asset protection and value preservation measures that can be put in place that (a.) reflect the circumstances of the transactions, and (b.) are aligned with the deals’ objectives, i.e., (1.) the life-value-function cycle of the assets, (2.) projected returns, and (3.) exit strategy!
