BUSINESS INTANGIBLES™ created the Enterprise Value Accounting System™ as an asset based approach that gives control to the management team. Increased control means increased business wealth. By applying the Identify-Capture-Grow-Sustain steps to Intangible Assets and Intellectual Properties, a clearer vision of company value is created.
Accounting practices under GAAP were previously sufficient in determining Enterprise Value. This is no longer the case. The value of Intangible Assets has surpassed Tangible Assets multiple times over. Publicly traded companies utilize a multiple ratio to determine Enterprise Value to Book Value. For example, Technology and Service industries can operate in double digit multiples. This is why Enterprise Value is considered the true on-going value of a company.
The Enterprise Value Accounting System™ gives Intangible Assets value. By segregating each Intangible Assets into categories and conducting a Valuation, management attains clarity. Management is then empowered to act, growing the asset and increasing value. By having clarity of the business’s Intangible Asset value, management can grow and sustain the Enterprise Value.
Please use the interactive graphic above or the link below to navigate through the steps that make up our Enterprise Value Accounting System™.