How capitalising your intellectual property can accelerate your company’s growth...
In the space of less than 50 years, the value tied up in the world’s biggest companies flipped on its head, from land and buildings to intellectual property (IP).
Research conducted five years ago by the IP-focused merchant bank Ocean Tomo found that, in the mid-1970s, more than four-fifths of the value in the S&P 500 stockmarket was made up by tangible fixed assets.
Then, by 2020, that had slid to just 10 percent, with the other 90 percent taken up by intangible assets: IP such as innovations, copyrights and trademarks.
But quantifying and recognising the value of your intangibles has never been a simple process. Historically, it has been the preserve of big companies like those on the S&P 500.
That might explain why in the UK, the ratio of intangible to tangible assets is closer to 70:30. Businesses wanting to realise the value of their intangibles tend to employ accountants to incorporate subsidiary companies and use intragroup transfers to recognise them through those transactions.
This is complex, as it requires an involved valuation process, often undertaken by accountants charging by the hour. And even then, the process cannot confer any real asset protection to the owner.
This is how RDA supports their clients: to take advantage of developing legislation to deliver accurate valuations, in line with international accounting standards, in the most convenient way possible for the asset holder.
Plus, because our process is anchored on the blockchain, we provide vital IP protection, even without putting your valuable commercial secrets into the public domain, as you must with a patent application.
By using our method, your company’s balance sheet is strengthened and enhanced with the added value of the new, capitalised assets. It is then able to secure additional finance from the new balance-sheet value, likely on better terms, than was ever possible previously.
If you would like to discuss how your company can take advantage of the IP it holds, protecting it while also adding balance-sheet value and gaining access to finance, scan the QR code to access our website.
RDA strengthens the economy by helping clients unlock the full value of their innovation through a unique, advisory-led approach.
