Why asset-light?

Let me be clear-I'm not using Enron as a rolemodel, when I refer to asset-light companies. I'm aware that Jeffrey Skilling made this Term pretty popular amongst Financial Analysts.

I have a different background as former Executive and Section 16 Officer (SEC) of a public company. If you got ever involved in Equity Valuation I bet you frequently argued if the assets, and I'm refering to the intangible assets only, sitting on the balance sheet are representing any value and what value this would be. As public company you need this very expensive fairness opinion from independent auditors to justify the term sheet and the price tag to your shareholders.

Let me tell you it is very difficult to put a price tag on Patents, IP Rights or Trademarks.

I purchased many IT companies in the last decade and believe me this is a tricky point.

I prefer asset-light companies with strong Cash-Flow.

I like those companies because they are usually very scalable and can adopt quickly to economic climate changes.




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