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 Pre-Post Transaction Due Diligence
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.
When decision makers attach undue expediency to transaction execution absent thorough due diligence makes deals susceptible to intangible asset hemorrhaging!
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!
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.