Michael D. Moberly, Principal, Founder, kpstrat
As a business intangible asset strategist, each transaction negotiation which I am familiar, intangible assets are in play insofar as…
- collectively contributing to – comprising a large percentage (80+) of the economic – competitive advantage rationale,
- for considering – pursuing a particular transaction, and
- the projected value of, and anticipated ROI to an aspired outcome.
Respectfully, business’s intangible assets materialize (among other ways) as various categories (types, forms, contexts, and applications) of intellectual, structural, relationship – cultural capital, and collectively – collaboratively contribute to value, revenue generation capacity – capability, and competitive advantage.
Realistically and practically (competitively, economically, strategically, etc.) its’ the business things intangible vis-à-vis their compatibility and convergence with existing (the acquirers) processes and assets, upon which projected transaction ROI’s are routinely framed, i.e., buy, sell, license, merger, acquisition, etc.
Unfortunately, for various reasons and influences, business things intangible are frequently overlooked, unrecognized, and undifferentiated in terms of their contributory roles and value,
- even though, value – competitive advantage – revenue generating intangibles represent – comprise the coveted targets’ and play significant roles insofar as the probability of realizing transaction outcomes – objectives.
Unfortunately, convention-laden (transaction) negotiating strategies appear to be framed (too) vertically relative to relying on the content – representations offered via conventionally framed balance sheets, financial statements, and ‘calculated guess’ projections.
Business transaction (negotiation) outcomes are now, and will remain so, for the foreseeable (likely irreversible) future, factually and overwhelmingly reliant-dependent on the…
- sustainability and resilience of contributory roles, value, revenue generation capacity-capability, and competitive advantages, etc., produced by the business things intangible sought, and
- conversion – integration to new-projected strategies (in other environments and/or sectors) to monetize, commercialize, and exploit same.
Transaction negotiations which conventionally overlook, dismiss, and under-value either are more likely to experience (unnecessary, unmitigated, costly, and potentially irreversible) risk.
I respectfully invite readers to consider the variously unconventional ‘business reputation risk’ perspectives posted (published) @ Business Intangible Asset Blog.