Abstract
The bankability of intangible assets represents a dominant aspect of the investment and valuation process. Intangibles create scalable value, levered by debt and serviced by incremental EBITDA and cash flows. However, they intrinsically incorporate information asymmetries and may so discourage debt but are a vital component of cash-generating value, so representing a key factor for debt servicing, with paradoxical effects (more guarantees with less collateral?). Ability to improve cash flows emerges as a key feature of value-enhancing intangibles, bypassing their lack of collateral value. Corporate governance concerns, unless softened, exacerbate bankability issues and make fair appraisal more difficult to carry on.
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Moro Visconti, R. (2020). Corporate Governance Concerns and Bankability Issues of the Intangible Assets: More Guarantees with Less Collateral?. In: The Valuation of Digital Intangibles. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-36918-7_19
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DOI: https://doi.org/10.1007/978-3-030-36918-7_19
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