In this month's newsletter we focus on the valuation of intangible assets: why you need to value them, when to value them, and how to ensure any valuation is accurate.
Intangible assets are the only real lever that can move enterprise value beyond cash flow multiples. To fail to actively manage – or account for – intangible assets is to effectively ignore your fiduciary duties as a director or manager. This includes ensuring that intangible assets are factored into any valuation in a way that accurately reflects the company’s true worth.
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.
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.