A corporations operating value is made up of its working capital, fixed assets, identifiable intangible assets and goodwill. In large M&A transactions, the share represented by intangible assets has gotten progressively larger. This is because, in the knowledge economy era, intellectual property has become such an important factor behind companies competitive strength. According to U.S. government statistics, public corporations in America derive 70 of their value from intangible assets, and PricewaterhouseCoopers own calculations show that, of the roughly US$250 million that exchanged hands in 100 American M&A deals between July 2001 and 2003, the purchase price allocation showed that 26% of the purchase price was for tangible assets, 22% was for intangible assets, and goodwill was 52%. pwc.tw/en/challenges/financial-advisory/indissue0268.jhtml
Posted on: Thu, 03 Jul 2014 00:28:35 +0000