True business value is not so tangible: how RDA can help your company find it
Across the past 50 years, there has been a dramatic shift in the intrinsic value of business assets. Despite rising property prices for most of that period, the proportion of balance-sheet value accounted for by tangible fixed assets has plunged. Taking their place have been intangibles, with intellectual property (IP) becoming an important element of a business’s activity. This much was demonstrated by research in 2020 from Ocean Tomo, an IP-focused merchant bank, which reviewed the balance sheets of S&P 500 market constituents.
Although the proportion is estimated to be slightly lower in the UK at 70%, there is still a clear focus in where the value resides: amongst intangibles. Given this transition, it is vital for businesses to develop clear research-and-development and IP strategies. By doing so, they can increase their competitive advantage, improve revenue generation, mitigate risks, raise business valuation and reduce their tax burden.
These benefits are best achieved with the support of an expert R&D- and IP-focused consultancy that can guide your company through the complex process of identifying, improving and protecting your IP. With the right, targeted support, your business can benefit first from tax relief through the R&D process in developing new products and processes. Then, once the IP is protected by patent, secondary relief can be obtained on the turnover generated using that R&D.
It is a ratchet mechanism for growth, which is why leading R&D consultancy RDA is offering readers an independent IP assessment worth £2,000 – absolutely free.