Our January newsletter focuses on intangible asset audits. Modern accounting standards tend to encourage companies to ignore or overlook intangible assets – they either don’t make the balance sheet at all, are lumped together under goodwill, or are merely recorded at cost (for which there is virtually no correlation at all to value). This means that the value and risks around intangibles assets often end up being masked. However, conducting an audit of your intangible assets can help uncover the true value of these assets.
Intangible assets represent over 87% of all company value today and are the real drivers of growth and profitability for most businesses. Failing to take the time to identify and manage these valuable assets not only represent a major missed opportunity to extract value but is also a potential breach of a Directors fiduciary duties.
EverEdge Capital invests exclusively in intangible asset opportunities and is looking to deploy into this space in a way that differentiates the fund from the standard venture capital and private equity model.
We see a lot of value being left on the table when entrepreneurs, inventors or businesses with valuable embedded intangible assets are not able to fully utilize or commercialize these assets.
Hear Francis Milner, Chief Investment Officer of EverEdge Capital, talk about the types of opportunities the fund is looking to invest in.
Intangible asset risk is often regarded as either not important at all, or important but not urgent. But when things go wrong, things can become catastrophic quite quickly. Hear Paul Adams, CEO of EverEdge Global, discuss what companies need to consider when it comes to mitigating intangible asset risk.
As companies start planning for 2019, intangible asset risk management should be at the top of the agenda. If it's not near the top of yours, we'd suggest reading about the level of damages awarded in the recent Cochlear IP litigation case. At A$380m - more than 17x the amount the business has set aside for liability - it is a stark reminder to Boards and management teams that intangible asset risk needs to be taken seriously.
EverEdge Global today announced the appointment of Francis Milner as Chief Investment Officer (CIO). An experienced investment banker and special situation private equity investor, Francis will be responsible for deploying capital via a proprietary investment approach that is designed to accelerate the commercialization and monetization of intangible assets.
EverEdge Global today announced the launch of its new investment arm, EverEdge Capital. EverEdge Capital will specialize in making investments in, and helping to monetize, intangible assets to deliver strong investment returns to both innovators and investors. It is currently seeking and reviewing investment opportunities across Australia, South East Asia and New Zealand.
Companies don’t spend millions of dollars filing intangible assets such as patents, trademarks and plant variety rights to stuff them in the bottom drawer.
Today, more than 87% of a company’s value and earnings growth is derived from intangible assets and it follows that companies will aggressively defend these assets – including through litigation, if necessary.
Today, intangible assets are not just the largest repository of value, but they are also the primary drivers of future company performance, which means they are also what fundamentally drives today’s (and tomorrow’s) share price.
To read more about what we’ve been up to and what’s coming up, please read on.
There is no question that data, correctly leveraged can deliver huge benefits. Over 87% of company value today is now in intangible assets and data, alongside brand, software code and confidential information, are critical to everyday business. Your customer list? That’s data. Your inventory management system? That’s data. In fact many of a company’s most basic functions from invoicing to advertising would grind to a halt without data.
Intangible asset valuation is important because intangible assets now account for over 87% of all company value. These assets are not just the largest repository of value they are also the primary driver of enterprise performance. Unfortunately the area is poorly understood and traditional valuation methods are often inaccurate or misleading. The result: investors frequently materially under or over pay for companies and assets.