Michael D. Moberly, Principal, Founder, kpstrat
For tech and social media sectors particularly, and all others, when deliberating whether-or-not to pursue an acquisition which is clearly intangible asset intensive, dependent, and reliant,
- the due diligence and risk mitigation components to the deliberation are also (fiduciarily) obliged to qualitatively – quantitatively…
- differentiate why, how, and when the value, competitive advantage, and revenue generation opportunities of same are sustainable, and will readily.
- translate as complimentary value adds when integrated and converged in a different business – operating environment wherein existing collectives and collaborations of intangible assets already exist.
- reflect projections as to whether the-to-be-acquired acquired assets will produce – deliver new – additional sources of value, competitive advantage, and revenue generation capability and capacity,
- for a determinate post-acquisition period, i.e., life-value-materiality cycle, etc., of the assets in play.
Experientially, I am hard pressed to recognize any business (buy, sell, license, acquisition, etc.) initiative wherein intangible assets are (a.) deemed attractive, and (b.) sought by another business, which are not,
- already in some state of development, commercialization, and exploitation by the assets’originator and/or current holder.
Correctly, intangible asset acquisition proposals and deliberations are (fiduciarily) obliged to include asset specific due diligence practices,
- designed to unravel and assesses whether and how the sought–after assets are transferable in their entirety.
- factor and mitigate risks to the assets sustainability insofar as delivering projected values, competitive advantages, revenue generation opportunities, etc.,
- for projected – ROI durations of their life, value, and materiality cycles,
- when applied to a new business environment and operating culture.
Readers who enjoy the various perspectives conveyed @ ‘Business Intangible Asset Blog’, are respectfully invited to read more @ https://kpstrat.com