Valuing Business’s Intangible Assets: It’s Time to Get Practical…

Michael D. Moberly, Principal, Founder kpstrat and ‘Business Intangible Asset Blog

The valuation of business’s ‘mission essential’ intangible assets (by third parties) can be an awkward, frustrating, and disappointing experience for business leaders, management teams, boards, and investors.

Conventional valuation processes (for business things intangible) can appear both very rule-standard driven, yet rather subjective, and not particularly nuanced nor current reflections of the various ways most businesses today, irrespective of sector, size, or stage are universally dependent + reliant on…

  1. internally and proprietarily developed, invested, held, and applied intangible assets and
  2. variously unique and sustainable contributions + value adds intangible make to particular-products, services, and/or brands, etc.

Business’s ‘mission essential’ intangible assets are those which sustainable have been proprietarily developed and contribute to achieving particular-favorable outcomes. (Michael D. Moberly)

Practically, this blog’s primary focus is to aid readers to recognize, differentiate, safeguard, and value particular business things intangible which are

  1. relevant + sustainable over long periods of time, e.g., the value-materiality (life) cycle of a particular product, service, mission, and
  2. qualitatively – competitively – contributorily measurable as being ‘essential’ to framing, achieving, and sustaining favorable outcomes, e.g., competitiveness and revenue generation capability-capacity.

Economically – competitively the above business economic + operational realities translate to

  • 70-80+% of most business’ competitiveness, revenue generation capability-capacity, sustainability, and operating culture, are
  • reliant – dependent on – embedded with particular-intangible assets, e.g., various forms, contexts, and applications of intellectual, structural, and relationship capital which converge and are exhibited as features – components to business’s operating culture.

In circumstances – transactions in whichbusiness leaders,et al, may not be ‘operationally familiar’ with the various ‘mission essential’ roles – contributions made-influenced by business things intangible.

When this occurs, the various + measurable contributions – value addsof particular -intangible assets, will more likely be unrecognized, un-or-under-valued, and at risk, along with the underlying knowledge, know how, and expertise being…

  • introduced at the right time, in the right way, and at the right cost.

Let there be no debate, most – more businesses today, and for the foreseeable future, are intangible asset intensive, dependent, and reliant.

The ‘Business Intangible Asset Blog’ is experientially researched, written, and produced by Michael D. Moberly (since 2006 – over 1000 long form posts) to provide readers (business leaders, management teams, boards, and investors) with reliable perspectives and nuanced insights to distinguish, value, and safeguard particular – business things intangible designated as mission essential. 

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