Intangible Value Estimation
The value of a company's intangible assets is an essential indicator of its future revenues, M&A potential, and R&D strength. At Tensor Bridge Invest, we have extensive experience in evaluating certain intangible assets related to technology, patents, and information value. Our expertise enables us to help clients identify and leverage intangible assets to drive business growth and increase shareholder value.
Some typical estimations in our field:
Intangible value refers to the worth of assets that cannot be physically touched or seen, such as intellectual property, goodwill, brand recognition, and customer relationships. The value of intangible assets has been growing rapidly, increasing from $6 trillion globally in 1996 to $74 trillion in 2021. In relation to tangible assets, the value of intangible assets has also increased, reaching 525% among S&P 500 companies in 2018, up from 400% in 1995.
New AI technologies such as large language models and AI media processing are expected to further boost the growth of intangible assets in the future. The intangible value of a company is an essential indicator of its valuation, M&A potential, R&D efforts, and its future development.
Evaluating intangible assets is not an easy task. Accounting methods for valuing intangible assets are not uniform, and indirect methods such as subtracting book value from market value are often used. This method is not entirely reliable since the market value of a company can change continuously, and the change may not be solely due to its intangible assets which are expected to be more stable over time.
Furthermore, there is a distinction between intangible assets related to goodwill, brand recognition, or customer distribution, and those related to technology, patents, publications, databases, or test procedures. The latter type is more connected to the value of information a company owns.
Tensor Bridge is a company with extensive experience in evaluating the latter type of intangible assets, which are related to information value. Intangible assets, and particularly information value, are becoming increasingly important in determining a company's overall value and potential for growth, and specialized firms such as Tensor Bridge are equipped to assess them accurately.
- Value of a new patent or of an existing patent owned by a company, taking into account the potential market size and the strength of the patent claims
- The aggregated value when merging the patent collection of two companies, including the potential to dominate a particular market or to block competitors
- Value of a proprietary algorithm / computer program, including potential licensing revenue, cost savings, and competitive advantage
- Value of specialized laboratories and test procedures, including the potential to develop new products, improve existing products, or reduce production costs
- Value and estimation of tacit knowledge in a company, including the potential to improve decision-making, increase efficiency, or develop new products
- Value of information in databases, including the potential to improve decision-making, reduce costs, or generate new revenue streams
- Value of an IT system used to gather data (from humans or physical sensors), including the potential to improve accuracy, reduce costs, or generate new insights
- Value of implementing chatGPT-style of large language modules, including the potential to improve customer service, automate certain tasks, or generate new insights
- Value of demand prediction models, including the potential to optimize pricing, reduce inventory costs, or improve customer satisfaction
- Value of simulation, twin models and optimization models, including the potential to reduce production costs, improve product quality, or optimize supply chain management
- Estimation of value related to market learning, including the potential to identify new market opportunities, improve competitive positioning, or reduce risk
- Value of tutoring material and simulator devices, including the potential to improve employee training, reduce costs, or improve product quality
- Value of macroeconomic and political risk models, including the potential to reduce risk, optimize investments, or identify new business opportunities
- Value of production recipes, including the potential to improve product quality, reduce production costs, or generate new revenue streams
- Value of forecasting algorithms, including the potential to optimize resource allocation, reduce inventory costs, or improve customer service
- Value related to coordination costs such as employing consultants and taking specialized courses, including the potential to improve decision-making, reduce costs, or improve employee skills
- Value of customer and supplier risk models, including the potential to reduce risk, optimize pricing, or improve supplier relationships
- Value of production / project planning systems, including the potential to improve project management, reduce costs, or improve product quality
- Value of writing and/or reading professional journals, including the potential to stay up-to-date with industry trends, identify new business opportunities, or improve decision-making
- Value of participating at exhibitions, including the potential to generate new leads, improve brand awareness, or identify new business opportunities.
