Identifying and distinguishing intangible assets and recognizing their contributory value should be routine components to all transaction due diligence. p
Intangible asset due diligence
Michael D. Moberly March 9, 2012 Conventional IP Audits Are No Longer Sufficient In today’s knowledge (intangible asset) based economy, conventional snap-shots-in-time, one-size-fits-all, check-the-box types… Read More
Essential that transaction management teams be alert to the potential for, if not the probability that, at some level, intangible asset hemorrhaging will (can) occur in either pre or post transaction context.
We’ve come to know that investments in early stage companies and/or university spin-off’s, VC’s will require, and probably correctly so, putting in place management teams with experienced (intangible asset and intellectual property) oversight and stewardship credentials.
Among other essential responsibilities, the management team and the inventors absolutely must ensure that control, use, ownership and value and materiality of the invested IP and intangible assets is being monitored.
“If it can’t be measured, it can’t be managed”, an adage attributed to Peter Drucker that, in my view, carries more relevance today than when it was initially uttered. That’s because increasing percentages (65+%) of company’s value, sources of revenue, and foundations for growth evolve directly from intangible assets
Due diligence management teams must recognize that the control, use, ownership, value, and materiality of targeted (intangible) assets are subject to being compromised, misappropriated, competitive advantages undermined, and/or value eroded if not monitored pre and post transaction.