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Why Businesses Continue To Ignore Business Evaluation?

Author: Robert N Lavine
by Robert N Lavine
Posted: Oct 02, 2014

In a booming economy, business evaluation sounds like the distant call of a sceptic! It is during recession when realistic lessons on survival are indeed learnt. No matter the state of economy one should always be prepared for the worst. You never know when the realistic assessment of Intellectual Property and intangible assets of your company can become the sole reason of survival of your enterprise.

While most of the start-ups are aware of IP, the concept of intangible assets might be new for some. These are basically the identifiable non-fiscal resources. By intangible it means that these assets might not show a direct physical value, but these are indeed valuable in today’s cut throat competition. For instance, Research and development costs, patents, brands, trademarks and copyrights are some of the examples.

If you’ve not yet given importance to this often ignored aspect of valuation of a business, here’s why you should give it a thought: A genuine evaluation enables you to sustain, control, and utilize your exclusive tights on the intangible assets you possess. You’re given an assessment on your intellectual property, and this enables you to extract real value from the same. Time factor is an important consideration and today any delay might cause a fortune. Due to shrinking of global barriers and a rise in sale of counterfeit products or goods, the more you delay the decision-making process on IP, the risk of losing your innovation increases manifold. Sadly, the conventional IP protective regulations like copyrights, trademarks and patents are losing their deterrence.

Everybody talks about the pros of technology, yet we turn a blind eye to the many cons it brings along. Data espionage and business intelligence are the tools which can bereft you of your real asset value. The damage caused by data mining might be irreversible or unrecoverable and might impact your fortunes in the ways you could have not estimated. This calls for an urgent action to seek professional help for a realistic estimate of your company’s value.

What do the professionals do? This is a common questions asked by the business owners. As the name suggests, a business appraisal professional makes a realistic valuation of a business. Depending upon your size and documents, it might take some time to investigate your financial statements. The in-depth analysis requires time as the relevant information might take time to make sense. Site visits and external data analysis might be needed to get the complete picture of your intangible assets and IP. As this process is an important step, don’t ever go for low-budget or quick evaluations. Money shouldn’t be a matter here, and you should probably investigate the past record of the professionals you want to hire for business evaluation.

About the Author

At Drysdale Valuation, we have a Passion for Valuation! This passion comes from our love of what we do, and makes us the firm to choose for your a href = "http://drysdalevaluation.com/"business valuation needs.

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Author: Robert N Lavine

Robert N Lavine

Member since: Oct 01, 2014
Published articles: 1

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