Intangible Assets and Company Succession

2011 ◽  
pp. 64-85 ◽  
Author(s):  
Susanne Durst
Keyword(s):  
Intangible Assets ◽  
Critical Factor ◽  
Complete Picture ◽  
Financial Investment ◽  
Succession Process ◽  
A Company ◽  
Return Data

A successful company succession depends on a multitude of different aspects. In the case of external succession, certainly, the available funds represent a critical factor. Nevertheless, it can be argued that the decision to acquire a company is based on other factors as well. This chapter rests upon the hypothesis that a potential external successor will be only interested in those companies offering promising prospects. Thus, it is expected that the decision to takeover a company is rooted in the target firm’s inherent intangible assets which justify a financial investment in return. Data are collected through interviews with eight external successors from Germany who pursued buy-in respectively buy-out initiatives in small and medium-sized enterprises. The study’s findings highlight those intangible assets that are regarded as critical in the external succession process. This helps us to obtain a more complete picture about the issue of company succession.

The Conundrum of Valuing a Company`s Intellectual Capital

2010 ◽  
pp. 1848-1861
Author(s):  
Luiz Antonio Joia ◽  
Paulo Sérgio da Silva Sanz
Keyword(s):  
Field Study ◽  
Intellectual Capital ◽  
Intangible Assets ◽  
Academic Literature ◽  
Study Methodology ◽  
Relationship Capital ◽  
A Company ◽  
Insight Into ◽  
Made In

Since the early 1990s, research has been conducted in an attempt to establish a viable and reliable manner of measuring the intangible assets, also referred to as the intellectual capital, of companies. Several models have been devised, most of them using indicators to evaluate the intangible assets of a given undertaking. In this chapter, exploratory field study methodology is used to analyse the behaviour of the “customer retention” indicator, which has been widely used to evaluate a company’s relationship capital. Two of the largest Brazilian e-retailing groups are analysed in order to obtain an in-depth insight into the behaviour of their frequent customers via their digital channel. Conclusions are presented, indicating that the role of frequent customers in e-retailing companies can sometimes be widely divergent from that presented in existing academic literature. Finally, recommendations are made in order to reach a clearer understanding of the conundrum of valuing a company’s intellectual capital via taken-for-granted indicators.

A rational approach to identify and cluster intangible assets

2015 ◽  
Vol 16 (4) ◽  
pp. 809-834 ◽  
Author(s):  
Franco M. Battagello ◽  
Michele Grimaldi ◽  
Livio Cricelli
Keyword(s):  
Business Performance ◽  
Intangible Assets ◽  
Mutual Influence ◽  
Building Blocks ◽  
Rational Approach ◽  
Content Type ◽  
Knowledge Based ◽  
Strategic Resources ◽  
Strategy Alignment ◽  
A Company

Purpose – This study is intended to work out a bottleneck in the comprehension of the relational nexus which links the set of key strategic resources (SRs) of a company, represented by the uncertain recognition and the ambiguous clustering of their intangible components. The purpose of this paper is to provide a candidate solution for a rational appraisal of the inventory of the knowledge-based resources held by a company, which synergically form its Intellectual Capital (IC). Design/methodology/approach – This goal is achieved by the means of a qualitative/quantitative approach composed of sequential phases, intended to: atomize the value domain of the firm into its basic building blocks; gauge their mutual interactions and impacts; re-aggregate those involved entities accordingly; cluster them into a collection of identified and validated Intangible Assets (IAs). Never giving any direct judgment on the IAs themselves (whose extension can be fuzzy or unknown). But on the impacts between the value drivers they are built on. Findings – The proposed procedure, step-by-step illustrated by means of a numerical simulation, out of the amorphous mass of the SRs, returns an analytic picture of its composing elements keeping track of their intertwined connections and mutual influence. Consequently, allowing the comprehension of the actual framing and of the relational positioning and magnitude of such entities. Practical implications – This risk-mitigated rational identification of IAs allows the analyst to target a proper evaluation technique on them. And the management of the company to mindfully allocate/leverage on them to improve business performance and strategy alignment. The implementation returns some analytic tools which render a diagnostic snapshot of the composing elements of the IC, increasing the awareness of such entities and allowing internal/external benchmarking. Originality/value – The suggested methodology mitigates the risk of discretionality in the definition of the perimeter of each target-entity, by avoiding any direct biased judgment on them. So that each asset gets unambiguously identified within a network-logic and the interlinked portfolio of knowledge-based resources can be assessed and managed in an rational and traceable way.

scholarly journals Is There Any Relation between Intellectual Capital and the Capital Structure of a Company? The Case of Polish Listed Companies

e-Finanse ◽  
2015 ◽  
Vol 11 (4) ◽  
pp. 23-33
Author(s):  
Monika Bolek ◽  
Katerina Lyroudi
Keyword(s):  
Capital Structure ◽  
Intellectual Capital ◽  
Intangible Assets ◽  
Stock Exchange ◽  
Equity Capital ◽  
Warsaw Stock Exchange ◽  
Relationship Of ◽  
The Relationship ◽  
A Company ◽  
The Capital Structure

Abstract This study investigates the relationship of the intellectual capital of a company (proxied by its intangible assets), with leverage and equity and capital structure. Our empirical results indicate that there is a negative relation between the intellectual capital (intangible assets) of a company and its leverage based on the Warsaw Stock Exchange main market and NewConnect alternative market. Moreover, the equity capital is found positively related to the level of intangibles in each of the two markets. These results support the thesis that intellectual capital (intangible assets) influences the capital structure of a company.

Implementing an intellectual capital framework in practice

2013 ◽  
Vol 14 (1) ◽  
pp. 69-83 ◽  
Author(s):  
Paola Demartini ◽  
Paola Paoloni
Keyword(s):  
Action Research ◽  
Intellectual Capital ◽  
Design Methodology ◽  
Intangible Assets ◽  
Content Type ◽  
Research Perspective ◽  
General Management ◽  
Operational Activities ◽  
Set Up ◽  
A Company

PurposeThe purpose of this paper is to analyse the transition from measurement to management in relation to intellectual capital (IC). It aims to understand the relationships between measurement of IC and operational activities, strategies and context.Design/methodology/approachThis study takes an “action research” perspective to investigate the management of the analysed company in respect to IC.FindingsThe study concerns a company operating in the field of electronics and defence, which has developed a model of IC management. Every project set up by the company that impacts on IC is subject to measurement, valuation and reporting. This model aims to be an effective support to general management, providing a link between intangible assets and capabilities that create value.Originality/valueThis study does not aim to develop a framework for IC measurement but to highlight the process leading to implementing an IC framework in practice.

scholarly journals Determining Economic Security of a Business Based on Valuation of Intangible Assets according to the International Valuation Standards (IVS)

Risks ◽  
2020 ◽  
Vol 8 (4) ◽  
pp. 110
Author(s):  
Dmitrii Rodionov ◽  
Olesya Perepechko ◽  
Olga Nadezhina
Keyword(s):  
Intellectual Property ◽  
Regression Model ◽  
Intangible Assets ◽  
Economic Security ◽  
Suggested Algorithm ◽  
Know How ◽  
Strategic Goals ◽  
The Impact ◽  
Further Development ◽  
A Company

This work considered the economic security of an enterprise with regard to the valuation of intangible assets according to the International Valuation Standards (IVS). This study is essential due to a growing number of companies with intangible assets (trademarks, patents, know-how, etc.) as their main value. This study included analysis of the impact created by the value of intangible assets and intellectual property on company capitalization and economic security plus a regression model. An algorithm was developed to determine the economic security of a business based on the valuation of intangible assets according to the IVS. The suggested algorithm can allow a company to manage its intangible assets effectively using the IVS, which, in turn, will provide the required level of economic security for further development and achievement of strategic goals by the business entity.

Methods of evaluation of intangible assets and intellectual capital

2017 ◽  
Vol 18 (3) ◽  
pp. 470-485 ◽  
Author(s):  
Marilei Osinski ◽  
Paulo Mauricio Selig ◽  
Florinda Matos ◽  
Darlan José Roman
Keyword(s):  
Strategic Management ◽  
Intellectual Capital ◽  
Intangible Assets ◽  
Content Type ◽  
Current Topic ◽  
Methods Of Evaluation ◽  
Competitive Model ◽  
Knowledge Intensive ◽  
A Company ◽  
A Current

Purpose The competitive model has changed. In this context, society entered into an era in which intangible assets are the greatest assets of a company. However, some gaps and uncertainties are presented in the literature as to understand the value of a company based on knowledge intensive activities. The purpose of this paper is to analyze the methods of evaluation of intangible assets in the context of business, economic and strategic management. Design/methodology/approach This is a qualitative research. This research is characterized as descriptive, bibliographic, inductive. Findings The main results of this research can highlight the existence of valuation methods of intangible assets intended for specific industries, as public and/or private, that can be better aligned to the context of business; economic and/or strategic management. Originality/value It was found that intangible assets are a current topic and increasingly addressed in the literature.

scholarly journals Driving Innovation through Energy Efficiency: A Russian Regional Analysis

2021 ◽  
Vol 13 (9) ◽  
pp. 4810
Author(s):  
Alexander Melnik ◽  
Irina Naoumova ◽  
Kirill Ermolaev ◽  
Jerome Katrichis
Keyword(s):  
Energy Efficiency ◽  
Energy Consumption ◽  
Energy Security ◽  
Recent Literature ◽  
Regional Analysis ◽  
Critical Factor ◽  
International Level ◽  
The Relationship ◽  
A Company ◽  
Reducing Energy

Recent literature on energy efficiency focuses on the issues of energy security and options for reducing energy consumption. Measuring energy efficiency properly and forecasting future needs is critical to the energy policies of any country, especially given the importance of sustainability in their economic development. The role innovation plays in improving energy efficiency is well researched. There is a gap in examining an opposite relationship. That is, where energy efficiency becomes a critical factor for fueling innovation. This impact can occur within a company, a region, a nation or on an international level. Here we show that regions could motivate business innovations through policies requiring energy efficiency. Based on observations from a number of regions of an emerging economy, we show that energy efficiency impacts innovation. As a side effect it can contribute to export increases, which in turn can improve regional attractiveness for investors. We believe that the spiral development of the relationship between energy efficiency and innovation used as a strategy could become sustainable.

scholarly journals DYNAMIC INTELLECTUAL CAPITAL MODEL IN A COMPANY

2015 ◽  
Vol 13 (1) ◽  
pp. 76-94 ◽  
Author(s):  
Vladimir SHATREVICH ◽  
Deniss ŠČEULOVS ◽  
Elina GAILE-SARKANE
Keyword(s):  
Dynamic Model ◽  
Intellectual Capital ◽  
Value Creation ◽  
Intangible Assets ◽  
Value Added ◽  
Dynamic Nature ◽  
Positive Interaction ◽  
A Company

The aim of this paper is to indicate the relations between company’s value added (VA) and intangible assets. Authors declare that Intellectual capital (IC) is one of the most relevant intangibles for a company, and the concept with measurement, and the relation with value creation is necessary for modern markets. Since relationship between IC elements and VA are complicated, this paper is aimed to create a usable dynamic model for building company’s value added through intellectual capital. The model is incorporating that outputs from IC elements are not homogeneously received and made some contributions to dynamic nature of IC relation and VA. Variables that will help companies to evaluate contribution of each element of IC are added to the model. This paper emphasizes the importance of a company’s IC and the positive interaction between them in generating profits for company.

scholarly journals Intellectual Capital Approach to Modern Management through the Perspective of a Company’s Value Added

2015 ◽  
Vol 16 (1) ◽  
pp. 31-44 ◽  
Author(s):  
Simona Survilaitė ◽  
Rima Tamošiūnienė ◽  
Vladimir Shatrevich
Keyword(s):  
Intellectual Capital ◽  
Value Creation ◽  
Intangible Assets ◽  
External Environment ◽  
Value Added ◽  
Strong Impact ◽  
Review Of Literature ◽  
Internal Resources ◽  
The World ◽  
A Company

The importance of value creation in small and medium-sized business companies has always been in focus. The changing environment makes a strong impact on all companies all over the world. Nowadays, the value added, which is created by the company, not only depends on tangible but also on intangible assets. It is not enough just to manage internal resources to be efficient or generate high value added. Knowledge and information as an important tool for the management of the external environment have become a new factor of a company. Since elements of the intellectual capital system are intangible and hardly measurable in company’s value added, this paper aims to create a model for the analysis of the creation of a company’s value added through intellectual capital. Subsequent to the review of literature on value creation and management, the authors proposed a model for value creation through intermediate, which presented three main elements of value added creation.

Innovation and Corporate Reputation Innovation and Corporate Reputation

2012 ◽  
pp. 264-277
Author(s):  
Michael Brown ◽  
Paul Turner
Keyword(s):  
Competitive Advantage ◽  
Corporate Reputation ◽  
Intangible Assets ◽  
Business Success ◽  
Innovation Capability ◽  
Effective Implementation ◽  
Good Reputation ◽  
A Company

As much as 75% of a company’s value derives from its intangible assets. One of the most important of these intangible assets is corporate reputation. The Britain’s Most Admired Company surveys into corporate reputation includes nine characteristics, one of these is a company’s ‘capacity to innovate’. Surveys between 1990 and 2009 show that a good reputation for innovation does not guarantee a good overall reputation; nor does a reputation for innovation lead to business success. However, where a company has a reputation for innovation and is able to manage other characteristics, there is a better chance that this company will develop its innovation capability into long-term competitive advantage and profitability. Central to this conclusion is converting innovation into enhanced processes, products or services through effective implementation. The research identifies key attributes of companies that combine a reputation for innovation, with a good corporate reputation overall and business success.

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