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1 Copyright © IPOS International 2020. All rights reserved.
IP Valuation and the importance of IP during a crisis 25 June 2020 – Webinar USA / UK / Australia / Singapore / New Zealand
Offices in Singapore, Sydney,
Auckland.
12 years > 800+ engagements.
EverEdge is an Net Promoter Score: +81% > industry
benchmark: -22%
intangible asset Return on Client Fees: +10X
specialist.
Ranked top IP strategist globally for
last 7 years.
Clients: Fortune 100, major investors,
SMEs, R&D institutes, governments.
We help companies & capital providers to:
Identify
Intangible Identify & Assess & Unlock
Assets Reduce Risk Value Value
Intangible Assets: The Most Important Thing No One Talks About
Components of S&P500 Value
100%
In 1975 intangible 90%
80%
assets accounted 70%
for 17% of 60%
50%
corporate value. 40%
30%
20%
Today it is 87%.
10%
0%
1975 1985 1995 2005 2015
Intangible Assets Tangible Assets
Intangible assets CEOs call it “competitive edge”
also known as…
Warren Buffet calls it “moats”
Analysts call it “barriers to entry”
Real assets that
have real value Entrepreneurs call it “the secret sauce”
Accountants call it “good will”
Margins Lawyers call it “IP”
Market Share
Confidential
Information Brand
Intangible assets Systems & Regulatory
are everywhere. Processes Approvals
Data Content
They are the
primary drivers Patents Design
of company Software
Code
Internet
Assets
www.
performance. Geographic Networks
MarksThe importance of the future to valuation of Intangible Assets and IP
Three classical methods:
1. Cost – Historical view
2. Income – Future view
3. Market – Current and
Valuation Basics: contextual.
Basic valuation
Note: The primacy of
methodologies. intangible assets in
driving growth favours an
income approach in many
instancesLag between development of Functional Innovation Intangible Assets develops future and related value and growth income.
Creation
Intangible assets are the
Value
only lever that moves EV
beyond cash flow
multiples. Strategic Value
Intangible Assets
Fixed assets & cash
drive “mechanistic” 4x EBITDA
Cash Flow
portion of enterprise
value. Fixed Assets &
Cash
$0
Destruction
Intangible asset risks can Risk
Value
reduce or destroy value.
11The bias to competitive advantage in forecast revenues
Intangible Assets = Market Share / Margins
High Market
Share
Strong Intangible Assets
Intangible
Assets Difficult to copy
Position
Market Share
Revenue/Margins
Weak
Intangible Everyone copies Profit
Assets
Position
you
ROI
Low Market
Product Success
Share
© EverEdge Global (NZ) Ltd. Confidential. 13Asset Value Over Time
Technology
Value
Brand
Time
© EverEdge Global (NZ) Ltd. Confidential.Risks and Opportunities in a crisis
Risks and Opportunities are often two sides of the same coin
Primary risk during Response is to
a financial crisis is decrease
the impact of investment – often
falling revenues at the expense of
IA generationLoss of Competitive
Advantage:
1. Erodes future
revenues
Unrecognised
2. Decreases IA value at
Risk: current state
Stagnation. 3. Erodes long term
value in Brand etc.This study shows that most companies, which invest heavily in R&D, do perform well in a recession. Furthermore, company performance during a single recessionary year can dominate its overall performance over a decade. Graham K. Morbey & Sanjiv S. Dugal (1992) Corporate R&D Spending During a Recession, Research- Technology Management, 35:4, 42-46, DOI: 10.1080/08956308.1992.11670834
IP generation in an economic slowdown provides out of scale benefit
Opportunities:
Out of scale 1. Opportunity to
opportunities increase competitive
advantage in function
– stagnation by
competitors
2. Brand increase rides
future wave.Copyright © IPOS International 2020. All rights reserved.
Who are we?
A Joint Vision
A Singapore where innovative
enterprises use intellectual
property (IP) and intangible
assets (IA) to grow.
• Government agency • Wholly owned subsidiary
under Ministry of Law of IPOS
• Statutory board for IP • Expertise and enterprise
laws and infrastructure engagement arm of IPOS
• Registry for trade • Over 100 IP experts
marks, patents and under one roof
design
2 Copyright © IPOS International 2020. All rights reserved.Holistic solutions for your business needs
UNLOCK GAIN INDUSTRY BUILD YOUR
BUSINESS VALUE INSIGHTS CAPABILITIES
With Intangible With Patent Search With IP Education
Asset Strategy & Analysis & Training
Business -c e n t re d P a t e n t s e a rc h a n d Ed u c a t io n a n d t ra in in g
s o lu t io n s t h a t a ss ist a n a lys is t h a t p ro vid e p ro g ra m m e s , fro m
e n t e rp ris e s in in s ig h t s a n d in t e llig e n c e e xe c u t ive t o in d u st ry-
u n d e rst a n d in g a n d in t o t e c h n o lo g y t re n d s s p e c ific a n d c e rt ific a t io n
m a n a g in g t h e ir IP a n d in d u st rie s t o u n c o ve r fo r e n t e rp ris e s a n d
a n d in t a n g ib le a ss e t s . n e w o p p o rt u n it ie s . in d u st rie s .
3 Copyright © IPOS International 2020. All rights reserved.Download our Business Guides
An Introduction to IP in Businesses,
In c lu d in g :
IP Rights Protection IP Creation Collaboration
4 Copyright © IPOS International 2020. All rights reserved.Diagnose Your Business with
illuminate® for enterprise is a free diagnostic tool
to assess your intangible assets (IA) and IP risks.
Get:
• Assessment of current IA/IP risk levels
• Key insights on potential IP/IA gaps
• Recommendations to manage and maximise
IA/IP.
5 Copyright © IPOS International 2020. All rights reserved.in a llia n c e w it h
Complimentary Intangible Asset (IA) Chat Session
For further questions/enquires,
please contact
Reuben
reuben.lim@iposinternational.com
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