Whilst valuing intangible assets was largely for accounting and compliance purposes before, there are now strategic reasons for businesses to understand how to manage, monetize and grow the value of their intangible and intellectual assets.
This segment of UHY Advisors’ Business in the Eye of the Storm series speaks to the need for businesses to establish a fair value for their intangible & intellectual assets, and which every good financial analyst should be acutely aware of as a present and growing trend when undertaking a financial modeling and valuation analysis on a business.
This video touches on the ability for some businesses to collaterize / borrow against their intangible assets, such as those in the biotechnology sector, and even entertainment content producers or other businesses with significant patents, processes or products that exhibit strong potential to create significant future value.
In another example cited in this segment, manufacturing businessess can also assess the value of their existing, well-established manufacturing processes and procedures, which may have unique intellectual property value.
These can be patented and accounted for in the overall value of their business, and in some cases help the business defend and better compete for the future.
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