EverEdge CEO Paul Adams was recently interviewed by senior journalist Tony Chapelle for an article he was writing for the Financial Times subsidiary, Agenda Week. The article looks at why it is so important for Boards and management teams to understand the true value of their intangible assets as well as the risks around them.
It is estimated that intellectual property or intangible asset theft costs the US economy between US$225 and US$600 billion annually.
With so much at stake, it is surprising that many companies are failing to put the right systems and processes in place to protect their trade secrets and confidential information. But the good news is, it is possible to take steps to minimize the theft or leakage of these assets.
Today, the theft of trade secrets and confidential information is the number one intangible asset risk companies face. Yet many Boards and management teams have not yet woken up to the significance this threat poses to their own organization or how prevalent this issue is. Find out more about why these assets are important, as well as how to identify and mitigate risk around them.
There is a common misconception, largely based on outdated accounting standards, that it is not possible to value data.
However, with intangible assets now driving more than 87% of company growth and profitability, new methodologies have been developed that can provide companies with a robust, defensible, business-focused report that contextualizes the value of these critical assets – including data.
Despite being so critical, intangible assets still don’t feature on most board or company agendas. This is especially apparent when you look at intangible asset risk, which is often regarded as either not important at all, or important but not urgent. This article looks at the top five intangible asset risks.
As the saying goes “if you build it, they will come”. However, in today’s knowledge based economy, ‘building it’ yourself is not necessarily the strategy that will create the highest return on investment. Instead, higher margin returns are increasingly owned by those who license or sell intangible assets, either instead of, or in addition to, solely deploying (building) products.
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.
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.
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.