Question

Let us consider the company 'Nike' for our study.

Identify all “information” assets that form part of the organisation. Perform asset valuation to determine asset value or worth of each asset identified.

Answer 1

Answer:

Information Assets:

An information asset is a body of information, defined and managed as a single unit so it can be understood, shared, protected and exploited effectively. Information assets have recognisable and manageable value, risk, content and lifecycles.

The key concept here is to group your individual pieces of information into manageable portions; if you had to individually assess every individual file, database entry and piece of data you hold you would likely have a list of millions of items and an impossible task. By grouping items at a level to match your objectives you can make the task actually achievable.

identify an information asset:

You should identify your assets according to the definitions above, considering the level of
granularity that is required to meet your objectives. An information asset is defined at a level of detail that allows its constituent parts to be managed usefully as a single unit.

Business Valuation:

Valuation is a process of appraisal or determination of the value of certain assets: tangible or intangible, securities, liabilities and a specific business as a going concern or any company listed or unlisted or other forms of organization, partnership or proprietorship. ‘Value’ is a term signifying the material or monetary worth of a thing, which can be estimated in terms of medium of exchange. In other words, it is an assessment resulting in an expression of opinion rather than arithmetical exactness. Business valuation requires a working knowledge of a variety of factors, and professional judgment and experience. This includes recognizing the purpose of the valuation, the value drivers impacting the subject company, and an understanding of industry, competitive and economic factors, as well as the selection and application of the appropriate valuation approach (es) and method(s). Recently, valuation has become a source of political and economic debates in the wake of privatization of state owned enterprises. Many owners and managers often ask,” How much is our business worth? And how much is theirs?” Due to increasing sophistication in business and changing economic and social environment of business, professional valuers face questions like

1. “What is our business worth?”

2. “What is their business worth?”

3. “What is the right price of that company?”

4. “What is the right price of our company?”

Some of the main objectives of corporate valuation are to:

1. Assist a purchaser or a seller in deciding the acceptable purchase consideration.

2. Assist an arbitrator in settling a dispute between parties.

3. Assist a lender in quantifying the security for loan.

4. Establish value for stamp duty.

5. Quantify a value for inclusion in accounting records

6. Assess a consequential loss claim

7. Assess a management buyout or a leveraged buyout.