You are on page 1of 5



MARCH, 2018

first Summary

When INTANGIBLE MUST be valued? . ability or knowledge. trademarks. In partnerships involving the acquisition is not the whole company. This chapter aims to develop a set of principles or benchmarks that can be widely applied in a variety of situations. Then the chapter the different types of corporate knowledge and their attributes are described. your knowledge is of a meager and unsatisfactory kind: it may be the beginning of knowledge. but when you can not measure it. In most cases what is sought in these types of agreements are intangible assets held by the acquisition target or potential ally signature. a dramatic increase was in mergers. software. aided by the codification of tacit before or intuitive knowledge of placing a value of money in a "package of knowledge" is a function of crucial management. you know something about it. but only part of its assets. alliance. These are now a permanent part of the economic landscape. acquisition. Nevertheless. and negotiation of knowledge and seller prospects are proposed acquirer. acquisitions and alliances. copyrights. from the point of view of the purchaser and the seller of the intangible asset. but just have in your thoughts.Valuation of intangible assets in global operations Farok J. or designs. As such activity increases as part of a general trend towards outsourcing and modularizarían of business functions. It highlights the many situations in which the valuation of intangible assets needs to be done. Whether in the context of a proposed merger. when you can not express it in numbers. and express it in numbers. calculating a value of intangible assets is a key issue in the practice of management. which will be used in combination with the other company. Sir Kelvin The last two decades of the twentieth century. advanced to the stage of science. Then endpoints for the transfer or sale of corporate knowledge. or the sale of patents. An example of a trading license illustrates the principles. contractor When you can measure what you are speaking about. R & D.

valuing the contributions of knowledge of each pair is a key issue. there could also be combinatorial incompatibilities. there are several circumstances of the business in which the intangible value that must be measured. such as trademarks. or licensed to another company. and problems of cultural compatibility between the merging organizations. 4. only part of the intangible assets of a company spun off another company. 2. However.In addition to the important issue of the valuation of the stock market. databases. or technology assets. Many mergers and acquisitions are justified on the grounds of combinatorial synergy between the knowledge base of the two companies.. sale. Does the acquiring company takes over the physical assets or the firm bought. royalty rates and other charges. sold. During negotiations on the formation of a joint venture (JV) or the many other forms of strategic alliances. . but what is the injection of new knowledge worth? accounting measures do not match the economic or market-based values (Reilly. purchase or licensing of independent. 6. Secondly Summary . 1. patents. and co-marketing. corporate alliances. Here courts must determine the costs of infringement and sanctions. "Separate assets" are those that can be detached from the company that owns and transferred. such as service management contracts. Lawsuits related to the violation of intellectual property. This decides the equity of the company partners participation. calculations fiscal responsibility in the context of the transfer of intangible assets and technology to affiliated companies. merger or acquisition. This could include any transferable or coded teaching knowledge and intellectual property rights or markets. Managing R & D put a value on potential future knowledge generated by investments in R & D is key to selecting between competing project R & D and assessment of the contribution of each partner in the co-development of the project. How much should the company licensing or acquisition of these assets pay? 3. by a legal transfer agreement and / or by forming another company in the use of knowledge transferred. copyrights. Here. sale. possibly in another nation. 1995).. 5. the costs of knowledge transfer for many years. franchise.

and even the types of results that can occur. planning and preparation go beyond what negotiators must do before trading. Because negotiation is a dynamic process communication process information.Negotiation Excellence: Successful Deal Making scientific world and often the most important step towards the successful negotiation is planning and preparation. However. where new. legal contexts and socio-cultural. expected or not expected. when Google publicly criticized China Internet censorship as a violation of the rights of freedom of speech and threatened to withdraw from China in January 2010. is to provide guidelines for planning and effective preparation time before and during the negotiation process. but also perceive the interests of the other party in conflict with their own. emotions. all determine the codes of conduct that the perception of what is allowed or not allowed negotiators way. but also those of counterparts. After two months. Analyze the negotiating context: Opportunities and constraints Historical. priorities and alternatives. Reach mutually acceptable agreement negotiating parties must cooperate and understand each other. negotiators must also be prepared to deal with contingencies. including guidelines for assessing the status of negotiation. and the factors that can interfere with the search target . Sufficient knowledge of the situation of trading enables negotiators to identify the rules of the game. therefore. . concerns. Planning and effective negotiation Preparation 3 Below this case is used to illustrate various aspects to consider in analyzing a situation negotiation. Google suspended its operation on land This case was widely regarded as a lose-lose negotiation. what is and it is not possible. respect the rules and constraints to deal with. When negotiations take place across national borders. An essential component of effective preparation is to conduct a well-rounded analysis of the situation of the negotiations. bargaining structure analysis. to understand not only the own positions. leverage resources. economic. and goals may arise. but also denied any conversation with Google in relation to his threat. including what issues to be negotiated are. China not only made no concessions. For example. The purpose of this chapter. Corporations doing business in different countries to take into account all these issues. Research has shown that quality deals with negotiators reach is significantly influenced by their trading stories. negotiating parties enter negotiations because they depend on each other to meet some needs. interests. can have a significant impact on the course of negotiations. diplomatic histories and the dynamics of power in international relations.

If the foreign entities such as the US government or US companies challenge their sovereign authority asking China to change its policy regarding the Internet. two of the most influential countries in the world have had disputes based on values concerning human rights of long standing. because the political system of China. It also means understanding that China is a conscious nation in history that values both knowledge of history and learn from it. Internet censorship is prescribed by law. From the perspective of China. Negotiators distributive bargaining strategies used to demand greater assess for themselves while using integrative bargaining strategies to expand the pie for both sides. the dispute between China and Google. automatically a business transaction turned into a political dispute in China. a company based in the United States. much stronger now Chinese government must reject and condemn such an attempt. companies are embedded in a political context in which China and the United States. Chai consideration of this question before establishing a contractual relationship with China. which pushed away from making possible concessions . When Google raised the issue of human rights violation.For example. In addition. Google should have given sufficient 4 M Liu and S. For Google and China. but history can not be a guest at the quiet table. The early relationship between China and Western countries was marked by a series of treaties inequality that forced China to give up sovereignty in a number of ways in late 1900.