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.
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.
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.
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.
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.
We are delighted to announce that EverEdge and IP ValueLab - a subsidiary of the Intellectual Property Office of Singapore (IPOS) - have signed an agreement toprovide strategic intangible asset advisory services in Singapore. The agreement positions EverEdge to expand into the burgeoning intellectual property market in Asia, through a new office in Singapore - its first in Asia – joining its existing offices in the United States, the United Kingdom, Australia and New Zealand.
Senior US director, Vincent Tobkin, has joined the Board. Secondly, EverEdge - in conjunction with the US Consulate and ATEED - is thrilled to bring Sunny Bates to New Zealand.