THE FOUNDERS
DILEMMA

More than 75% of the value of a company is
attributed to the cash flows beyond the fifth year
and 60% of the value creating assets of any firm
are intangible.

These are well known facts in finance, reminding
us that a disproportionate part of the firm’s value
depends on the strategic management of the intangible
assets through time. Globally, the total value of these
intangible assets is close to $50 trillion USD.

“60% of the value
creating assets of
any firm are
intangible.”

There are well-respected accounting approaches created
by standard setting bodies for measuring and reporting
point-in-time,discrete, valuations of intangible ‘asset’.
Their rigour is well suited for M&A scenarios
and for reporting and legal applications.

However...

There is no tool for leadership teams and owners,
to strategically manage the value creation opportunities
and risks arising from intangibles in an on-going business,
where many interdependent relations between
intangibles exist. What is more, the financial ratios
that are widely used inside companies are not
sensitized to the drivers of the company’s intangible
assets, leaving leaders and managers unequipped
to take value creating decisions.

“There is no tool for leadership teams and
owners, to strategically manage intangibles.”

We believe the gap between measuring and managing
these assets puts trillions of dollars of company
value at risk and is one of the root causes behind the steady
stream of corporate crises and the plunging longevity
of companies worldwide. It has become too significant a
problem to ignore. Especially for founders and owners who are building
an institution and have an interest beyond next quarter’s results,
it is of supreme importance to come to grips with this problem.

So how can we
bridge this gap?

By their nature, intangibles such as values,
culture, the brand, innovation capacity and
purpose, are interdependent and highly variable.
Their strategic management, therefore, can
only be done through scenarios and probability.

Together with owners of large and small companies
across different industries, Longwealth has developed
a unique framework which maps
the mind state of the top team and its deep influence on the
drivers of a company’s intangible assets, and connects
it down stream to ROCE, ROI and IRR measures.

Longwealth has developed a unique
framework for founders
and owners to manage
value creation
through intangibles.

This framework brings owners and their
leadership teams in a much better position
to understand growth and innovation drivers
and manage the often non-linear process of value
creation rather than relying of straight line static business
plans or DCF models alone.
It also opens Finance up to an enterprise wide collaboration
to understand intangible drivers across leadership,
human capability, innovation and sales & marketing.
Lastly such a co-created output will serve as an effective
counter thesis to the dominant narrative of market valuation
driven by quarter to quarter management.



SOLVING THE FOUNDERS
DILEMMA

Our framework enables founders to align the company
management to the long-term vision. We help
maximise the chances of aligning the organisation with
building a stable and respected institution that creates
value for all stakeholders - also for further generations.

Contact us

WHAT WE OFFER

We work with founders to develop tailor-made
approaches to achieve the following goals:

  1. Bridging the Founder's expectations with
    Management objectives
  2. Build awareness around the role of the Executive
    mindset in driving long-term value creation
  3. Develop shared views on the role of brand, culture
    and innovation in long-term value creation
  4. Develop value creation scenarios to test the
    sustainability of future cash flows
  5. Institutional memory building
  6. Communication of LTV drivers to internal and
    external stakeholders
  7. Litmus testing long-term value