Eighty percent or more of an average company’s value could lie in its intangible assets. Understanding the hidden value of a business is the key to communicating its importance to stakeholders.
The year 2017 marked a milestone for Alphabet, the parent company of Google, when its market valuation passed $600bn for the first time.
Where, though, does the bulk of that value lie? It is certainly not in real estate, buildings, fixtures and fittings—selling its tangible assets on the open market would raise only a tiny fraction of the company’s worth. No, its value lies in its algorithms, its people, its culture and its brand.
In the past two decades or so there has been a sharp increase in the contribution of intangible assets to a company’s value. The US-based intellectual property specialist Ocean Tomo carries out an annual ap
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The drive for sustainability has to some extent undermined the concept of shareholder value. Denis Kilroy argues that the key strategy companies should be pursuing is creating ongoing value and wealth.