By design, the objectives for implementing intangible asset safeguards should be to...sustain (indeterminate) control, use, and ownership of key-relevant assets throughout their respective contributory value, materiality, and functionality (life) cycles. https://kpstrat.com/wp-admin/post.php?post=5321
In order for these safeguard objectives to be consistently achieved...company management teams are obliged to…
- monitor the assets’ development, particularly, its contributory role and value, and be alert to…
- the presence-materialization of risks ala vulnerability, probability, and criticality, and
- measure any fluctuation(s) in key assets’ contributory role(s) and value to a particular project, product, or transaction.
Deploying effective intangible asset safeguards in advance will contribute to…
1. Elevating (company) leaderships’ confidence – adding predictability to business transaction outcomes in terms of achieving the preferred-negotiated outcomes, i.e.,
a. how intangible assets are applied, exploited, and other circumstances in which intangible assets will inevitably be in play.
2. Sustaining each assets’ status, stability, fragility, defensibility, and contributory role and value, will already have been recognized as a product of regular (intangible) asset monitoring.
3. Recognizing the economic fact that 80+% of most company’s value, sources of revenue, competitiveness, and sustainability today lie in – emerge directly from intangible assets.
4. Understanding that the absence and/or hesitance for monitoring intangibles assets’ status, can produce unnecessary risk to adversely affect a deals’ terms, objectives, projected returns, and exit strategy.
a. If-when any substantive risks are recognized (materialize) transactions should be re-negotiated, otherwise, either party may experience discrepancies and/or deficits.
5. Bringing (necessary) clarity to business decision maker’s role and (fiduciary) responsibilities insofar as the development, monitoring, and safeguarding of key intangible assets including relevant intellectual properties and (proprietary) competitive advantages.
a. This matters for both pre and post transaction due diligence.
6. Creating company-wide efficiencies by aligning intangible asset stewardship, monitoring, safeguards, and risk mitigation with core company strategies, financial risk management, and each assets’ respective contributory value and materiality cycle.
7. Effectively allocating intangible asset safeguards and risk mitigation resources relative to what, when, where, how, and who any (asset)losses and/or value-competitive advantage hemorrhaging may have originated.
8. Advancing business leaderships’ understanding of key strategies to thwart, counter, and/or mitigate current and emerging risks and vulnerabilities to a company’s intellectual property and other intangible assets.
9. Extending conventional audits and asset valuations beyond mere ‘snap-shots-in-time’.
10. Identifying a more complete range of events – circumstances that can impair, erode, and/or undermine the receptivity and/or value of intangible assets considered for potential licensing.
11. Bringing a ‘range of options, choices, and decision parameters’ for boards, c-suites, investors, fiscal officers, and legal counsel…
a. when certain risks materialize, and
b. the execution of ‘organizational resilience’ plans.
Michael D. Moberly – September 11, 2018 – St. Louis – kpstrat.com. – [email protected] – ‘Business Intangible Asset Blog’ (since May 2006) https://kpstrat.com/blog where one’s attention span, business realities, and solutions converge!
Readers are invited to explore other posts, papers, and books I have published at https://kpstrat.com/books/