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AIM! Asset Identification and Maximization
Driving InnerProfits
Determining Company Value in
an Intellectual Economy
AIM! Asset Identification and Maximization
The Intellectual Economy
Agrarian Industrial Technological Intellectual
The times are surely changing
AIM! Asset Identification and Maximization
The Intellectual Economy
“The empires of the future will be empires of the mind”
1943 Winston Churchill
AIM! Asset Identification and Maximization
“The world is moving from an economy of goods to an economy of knowledge. From
a society dominated by the industrial proletariat to one dominated by the brain
workers.”
Circa 1960’s Peter Drucker
The Intellectual Economy
AIM! Asset Identification and Maximization
The Industrial System
Intangibles
Finances
Raw materials
Tertiary significance
AIM! Asset Identification and Maximization
The Intellectual System
materialsfinances
technology
Today’s organizations are more dependent on the intangible assets than any previous economy
AIM! Asset Identification and Maximization
Balance sheet vs. Market Cap – circa 2005 28% correlation
The Intellectual Economy
Balance sheet vs Market Cap – circa 1960 95% correlation
AIM! Asset Identification and Maximization
The Intellectual Economy
What makes up the other 72%?
What effect does it have on Value?
AIM! Asset Identification and Maximization
The Intellectual Economy
Two types of assets
Tangible Assets
AIM! Asset Identification and Maximization
Tangible assets - examples
An asset that has a physical form such as:
• Machinery• Buildings • Land• Bank Deposits • Investments• Inventory• Traditional Balance Sheet Items
ONLY 28% of the story
AIM! Asset Identification and Maximization
Intangible assets
• Legal Intangibles
• Competitive Intangibles
AIM! Asset Identification and Maximization
Although intangible assets are hard to identify, they can actually be seen quite easily :
External Identity – brand equity, customer and supplier attitude about company, market message
Internal Identity – organization structure, systems, processes, ethics, values, dissemination of knowledge, communications, leadership, strategy, team identity
Intellectual Identity – talent-capacities, competencies, education, experience, training of it’s people
Intangible Assets
AIM! Asset Identification and Maximization
•Knowing what drives value helps determine what to do going forward.
•Today’s value determines tomorrow’s decisions
o in expansion
o hiring
o capitalization
o benefits structure
o new shareholders or dilution strategies
When I know it’s value I know what I can expect to be my ROI. That helps me manage my own net worth and the best use of my capital.
Why Does it Matter to Me and My Company?
AIM! Asset Identification and Maximization
•If the potential value of your company is determined by a large amount of intangibles then how can those be quantified?
o If unquantified how much is unmanaged?
o If unmanaged then what affect is that on value?
Why Does it Matter to Me and My Company?
AIM! Asset Identification and Maximization
Why Does it Matter to Me and My Company?
The answer is, it means everything to the value of
your company
AIM! Asset Identification and Maximization
Case Study 1
A Cornell University study of large publicly funded companies, found that companies using “high performance” human capital
asset practices have market values that range from between $16,000 and $40,000 per employee higher than firms that do
not use such practices.
High Performance was defined as having comprehensive strategies for:
• Selection and Workforce alignment
• Management and Workforce alignment
• Motivation of employees and workforce alignment
AIM! Asset Identification and Maximization
Case Study 2
A Deloitte study of high tech start-ups showed that for firms going public with a high levels of understanding and
management of their intangible asset value, the probability of survival is .79; for firms going public with low levels, however,
the probability is only .60.
AIM! Asset Identification and Maximization
A
I
M
Company
Tangible Assets
Intangible AssetsIntangible
Assets
Executive Team
Executive Team
TAA
AIM! Asset Identification and Maximization
The AIM Process
Total Asset Assessment
•Financial Asset Assessment
• 3-5 years financials
• Operating agreements
•Intellectual Asset Assessment
• Key management and executives
• Business Strategy Questionnaire
AIM! Asset Identification and Maximization
The AIM Process
What can you expect to see from the assessment?
• Value over time
• A quantification of your adjusted risk
• What is driving value
• ROE / ROA / ROI
• Management Team efficiencies / hindrances
• Findings / Recommendations
AIM! Asset Identification and Maximization
The AIM Process
Recommendations
• Shareholder dilution strategies
• Merger Acquisition advice
• Management development of KPI’s (Key Performance Indicators)
• Management development to lower impact on risk
• Company specific competency modeling and organizational development
• Marketing Message Impact / Analysis / Quantification
• Strategic Business development
• Tactical business development
• Recommendations that drive value up by lowering risk and increasing asset efficiency
AIM! Asset Identification and Maximization
IMX Consulting
• Dedicated Team of Specialists
marketing
sales
development
coaching
mentoring
training
analysts
consultants
• Designing services to drive your performance in value creation.
AIM! Asset Identification and Maximization
WE ARE LOOKING FORWARD TO HELPING YOU SUCCEED.
SHOKRAN
www.innermetrix.com
AIM! Asset Identification and Maximization
Head Office
Innermetrix International
1 Main Street, Suite 200
Tequesta, FL 33469
Tel: 888-687-2570
www.innermetrix.com
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SHOKRAN
