AIM! Asset Identification and Maximization Driving InnerProfits Determining Company Value in an Intellectual Economy

AIM! Asset Identification and Maximization The Intellectual Economy Agrarian IndustrialTechnologicalIntellectual The times are surely changing

AIM! Asset Identification and Maximization The Intellectual Economy “The empires of the future will be empires of the mind” 1943 Winston Churchill

AIM! Asset Identification and Maximization “The world is moving from an economy of goods to an economy of knowledge. From a society dominated by the industrial proletariat to one dominated by the brain workers.” Circa 1960’s Peter Drucker The Intellectual Economy

AIM! Asset Identification and Maximization The Industrial System Intangibles Finances Raw materials Tertiary significance

AIM! Asset Identification and Maximization The Intellectual System materials finances technology Today’s organizations are more dependent on the intangible assets than any previous economy

AIM! Asset Identification and Maximization Balance sheet vs. Market Cap – circa % correlation The Intellectual Economy Balance sheet vs Market Cap – circa % correlation

AIM! Asset Identification and Maximization The Intellectual Economy What makes up the other 72%? What effect does it have on Value?

AIM! Asset Identification and Maximization The Intellectual Economy Two types of assets Tangible Assets

AIM! Asset Identification and Maximization Tangible assets - examples An asset that has a physical form such as: Machinery Buildings Land Bank Deposits Investments Inventory Traditional Balance Sheet Items ONLY 28% of the story

AIM! Asset Identification and Maximization Intangible assets Legal Intangibles Competitive Intangibles

AIM! Asset Identification and Maximization Although intangible assets are hard to identify, they can actually be seen quite easily : External Identity – brand equity, customer and supplier attitude about company, market message Internal Identity – organization structure, systems, processes, ethics, values, dissemination of knowledge, communications, leadership, strategy, team identity Intellectual Identity – talent-capacities, competencies, education, experience, training of it’s people Intangible Assets

AIM! Asset Identification and Maximization Knowing what drives value helps determine what to do going forward. Today’s value determines tomorrow’s decisions o in expansion o hiring o capitalization o benefits structure o new shareholders or dilution strategies When I know it’s value I know what I can expect to be my ROI. That helps me manage my own net worth and the best use of my capital. Why Does it Matter to Me and My Company?

AIM! Asset Identification and Maximization If the potential value of your company is determined by a large amount of intangibles then how can those be quantified? o If unquantified how much is unmanaged? o If unmanaged then what affect is that on value? Why Does it Matter to Me and My Company?

AIM! Asset Identification and Maximization Why Does it Matter to Me and My Company? The answer is, it means everything to the value of your company

AIM! Asset Identification and Maximization Case Study 1 A Cornell University study of large publicly funded companies, found that companies using “high performance” human capital asset practices have market values that range from between $16,000 and $40,000 per employee higher than firms that do not use such practices. High Performance was defined as having comprehensive strategies for: Selection and Workforce alignment Management and Workforce alignment Motivation of employees and workforce alignment

AIM! Asset Identification and Maximization Case Study 2 A Deloitte study of high tech start-ups showed that for firms going public with a high levels of understanding and management of their intangible asset value, the probability of survival is.79; for firms going public with low levels, however, the probability is only.60.

AIM! Asset Identification and Maximization AIMAIM Company Tangible Assets Intangible Assets Executive Team TAA

AIM! Asset Identification and Maximization The AIM Process Total Asset Assessment Financial Asset Assessment 3-5 years financials Operating agreements Intellectual Asset Assessment Key management and executives Business Strategy Questionnaire

AIM! Asset Identification and Maximization The AIM Process What can you expect to see from the assessment? Value over time A quantification of your adjusted risk What is driving value ROE / ROA / ROI Management Team efficiencies / hindrances Findings / Recommendations

AIM! Asset Identification and Maximization The AIM Process Recommendations Shareholder dilution strategies Merger Acquisition advice Management development of KPI’s (Key Performance Indicators) Management development to lower impact on risk Company specific competency modeling and organizational development Marketing Message Impact / Analysis / Quantification Strategic Business development Tactical business development Recommendations that drive value up by lowering risk and increasing asset efficiency

AIM! Asset Identification and Maximization IMX Consulting Dedicated Team of Specialists marketing sales development coaching mentoring training analysts consultants Designing services to drive your performance in value creation.

AIM! Asset Identification and Maximization WE ARE LOOKING FORWARD TO HELPING YOU SUCCEED. SHOKRAN

AIM! Asset Identification and Maximization Head Office Innermetrix International 1 Main Street, Suite 200 Tequesta, FL Tel: France – South Africa – United Kingdom – Egypt – United States - Canada SHOKRAN