“If it can’t be measured, it can’t be managed,” an axiom attributed to Peter Drucker and several others, carries as much relevance today as when it was initially offered. Increasing percentages (65%+) of a company’s value, sources of revenue, and foundations for growth evolve directly from intangible assets including intellectual properties, proprietary know-how, brand, goodwill, etc.
In fact, there is no other time in history when measuring and managing the value of knowledge-based assets (intangibles) is more necessary to a company’s growth and profitability.
Only by assessing the value of a company’s intangibles can management teams be positioned to recognize, in a timely manner:
- erosion – undermining of asset value and competitive advantages through misappropriation, infringement, and counterfeiting
- material changes in assets relative to Sarbanes-Oxley and FASB
- asset obsolescence
Current, accurate IP asset valuation allows management teams to be more responsive to:
- handling inevitable challenges, disputes, and routine external targeting
- meeting their ever expanding fiduciary responsibilities insofar as protecting, preserving, strengthening, and managing their intangibles
- allocating /directing resources commensurate with an asset’s value