Intellectual Assets valuation: turning knowledge into value

Mr. Yiannis Geragotellis, KiNNO Consultants Ltd.

INTELLECTUAL PROPERTY ASSETS AND INTANGIBLE ASSETS OF SMES

The Capital of an organization

Intangible goods

Tangible goods Assets that are physically generated in a company

Assets that are not physical in nature

Intangible assets are defined as the immaterial factors that beneficially contribute to the performance of the enterprise, to the production of goods or provision of services and which hopefully will generate future economic benefits for entities or individuals.

INTANGIBLE ASSETS AND SMES

STRUCTURE OF INTANGIBLE ASSETS

Human Resources

Entrepreneurial Experience

Staff Education and

Competences

Know-how - Tacit Knowledge

Staff Motivation and Loyalty

Human resources are included among the values of intellectual capital, being also recognized by international standards of evaluating the assets of an organization.

Intellectual Property

Know-how - Codified Knowledge

Business Information. Trade, Business &

Industrial/Technology Secrets

Patents and Inventions

Trademarks & Brands

Designs & Models

Author Right/Copyright

Intellectual Property concerns the rights of intellectual property to which the protection of distinctive signs is added.

Organizational Capital

Methods/ Procedures for production/ supply of

services

Certificates

Project/ Operations

Management

Administrative System

Organizational Capital is the value to an enterprise which is derived from organization philosophy and systems which leverage the organization’s capability in delivering good or services.

Relational Capital

Customer attraction

Existing Clients Portfolio(s)

Management

Management of Suppliers

Cooperations - Networks

Relational capital is the value inherent in a company's relationships with its customers, vendors, and other important constituencies.

APPROACH: VISUALIZATION & VALUATION OF INTAGIBLE ASSETS

Selection & Involvement of SMEs

Identification of Intellectual

Assets

Visualization of Intellectual

Assets

Valuation of Intellectual

Assets Follow up

Approach

Identification of Intellectual Assets: Support enterprises discover their own IAs and start considering them as “value”. Visualization of Intellectual Assets: Support enterprises identify and visualize their valuable intangible assets through the whole value chain, in order to understand their IA’s potential and start considering them as aspects that can give added financial value. Valuation of Intellectual Assets: Support enterprises and strengthen their position when contacting financial stakeholders in order to get funding.

Why Visualization of Intangible assets?

The enterprise will understand and identify WHICH intangible assets:

Have been created (Creation), Have a role/ function in the enterprise and create value

(Functioning), Have the potential of generating future cash flows (Planning) Have a value or provide advantages that can be transferred

to third parties (Transferability)

and the LEVEL of their relevance for the enterprise.

Nowadays enterprises are facing many difficulties in finding financial resources from investors. Valuation of the intangible assets is considered of very high importance, since IAs do not have only academic interest, but they can also give added financial value to the company. It is essential to exploit their competitive advantage and to facilitate their access to financial resources to enable their development through the exploitation of their Intellectual Property.

Why Valuation of intangible assets?

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Thank you for your attention!

Mr. Yiannis Geragotellis KiNNO Consultants Ltd. geragotellis@kinno.eu

www.support2finance.eu