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Valuation of
Intellectual Assets
Conventional business valuation
calculations employ one of a number of arbitrary formulas to
put a “value” on
intangible assets such as contracts, licenses, market position
and trade names. Unfortunately, most of these valuation formulae do not accurately
track the value of the most volatile and critical of those
intangibles, namely a business's intellectual assets.
Ignyt has developed an improved intellectual
asset management framework that can be used to better identify,
value and track the status of critical knowledge
assets and intellectual property. These assets may include a company's
technology infrastructure, its patents, software and
products in development. The list should also include assets such as
information collection systems and databases which might be bought, sold or shared, and the value of
such assets should be recognized during the valuation process. It may also be possible to identify quantifiable value at risk in
the special skills and domain expertise of the professional staff. These
too, or their potential loss, should properly be accounted in the course of a valuation exercise.
Ignyt's intellectual asset valuation framework is of particular value to knowledge-based companies and investors - current or prospective - in considering:
- New funding opportunities
- Alternative capitalization strategies
- Merger or acquisition opportunities
It may also help to provide a common sense basis for assessing proposed cost control initiatives, compensation, hiring and staff retention strategies or risk attenuation
strategies such as “critical man” insurance.
For further information, please contact Jack Bryar at (802) 843-6033.
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