Value creation is the study of what drives the operations of companies today. In this 75-minute program, acclaimed author Mary Adams, a highly respected intangible asset strategist, brings clarity to the changing nature of our economy and how it has led to the increased importance of intellectual property and intangible assets: in how companies look, how they work, and what drives their financial performance.
Adams covers what every business valuation analyst needs to know in the increasingly knowledge-based economy in which IP and intangibles constitute more than 80% of most companies' value and sources of revenue. This program acknowledges core valuation methodologies do a good job of getting at the stand-alone value of intangibles while pointing to opportunities to improve the level of analysis of knowledge-based companies by:
- explaining why 47% of the average merger price ends up in goodwill;
- demonstrating how data on the accumulated investment of intangibles (which now exceeds tangible investment in the U.S.) tell a clear story of the creation of a new kind of knowledge infrastructure in today's company that includes intellectual property as well as a variety of intangible asset;
- making the connection between this intangible infrastructure and revenues, performance and overall corporate value; and
- suggesting how an understanding of these intangible value drivers will improve the analysis you do of both stand-alone intangible assets and overall corporate valuation.