Connecting...

CIMA: British businesses in danger of takeover

News | CIMA | accountancy | Takeover

W1siziisijiwmtcvmdqvmjcvmtivntuvmjqvotkvynjpdglzac1idxnpbmvzc2vzlwlulwrhbmdlci1vzi10ywtllw9mzi5qcgcixsxbinailcj0ahvtyiisijewmdb4ndawiyjdxq

British companies are in danger of takeovers and exploitation, a new study has indicated.

Research from the Chartered Institute of Management Accountants (CIMA) found that more than $1.58 trillion (£1 trillion) of assets are totally unaccounted for, meaning British businesses are left vulnerable to underpriced bids and exploitation.

Many of the UK’s company directors and government are concerned about the value of the assets they control, which may have an impact on the government’s long-term economic plan and CIMA’s study is calling for an evaluation of Britain’s intangible assets.

Research found that, since 2012, undisclosed intangible value has risen 50 per cent to $27 trillion (£18 trillion), representing more than a third of the average firm’s enterprise value.

The report suggested that, failing to effectively account for intangibles could lead to short-term economic gains over long-term value, while undermining service-sector dominated economies including the UK. 

Britain is good at creating strong brands and is a focal point for businesses that are dependent on intangible assets, including pharmaceuticals, luxury, aerospace and engineering, meaning Britain is the fourth most intangible economy behind America, Denmark and Belgium.

David Haigh, chief executive officer of Brand Finance, said: “This report challenges those leading the debate on our national economic policy. This is an issue which needs a speedy resolution to avoid further national treasures like Cadburys being left to the mercy of foreign buyers and taken over for less than they are worth.

“The issue of inaccurate intangible asset value reporting rose to prominence in the M&A boom of the 1980s.”

Mr Haigh explained that, after 30 years of debate among standard setters in the accounting sector, the next mergers and acquisitions boom is on the way. 


Posted by Jon Aspinell on 27th April 2015

SHARE

RECENT CONTENT
W1siziisijiwmtcvmdcvmtavmtavndcvntgvmjy1l1cxc2laaulzswpjd01uy3znrff2twprdk1urxznelv2turrdk5etxhmm2rwy21vdwfulmpwzyjdlfsiccisinrodw1iiiwimzm1ede3mfx1mdazyyjdxq
VACANCY

Junior Information Security Analyst

City of London, London

£30000 - £35000 per annum + bonus and benefits

Junior Information Security Analyst - Bank, London A highly successful, global financial services business based in t...

READ MORE
W1siziisijiwmtcvmdqvmjqvmtevmzmvndavnty5l21hcmsxlmpwzyjdlfsiccisinrodw1iiiwimzm1ede3mfx1mdazyyjdxq
VACANCY

Head of Marketing

London

£75,000

A highly successful, international organisation specialising in market intelligence, information and events is lookin...

READ MORE
W1siziisijiwmtcvmdcvmtavmtavndcvntgvmjy1l1cxc2laaulzswpjd01uy3znrff2twprdk1urxznelv2turrdk5etxhmm2rwy21vdwfulmpwzyjdlfsiccisinrodw1iiiwimzm1ede3mfx1mdazyyjdxq
VACANCY

Software Developer (C#.Net)

South West London

£70,000

A market leading software company boasting some of the world's leading technology companies as customers is looking t...

READ MORE
W1siziisijiwmtcvmdcvmtavmtavndcvntgvmjy1l1cxc2laaulzswpjd01uy3znrff2twprdk1urxznelv2turrdk5etxhmm2rwy21vdwfulmpwzyjdlfsiccisinrodw1iiiwimzm1ede3mfx1mdazyyjdxq
VACANCY

Lead Systems Engineer

Woking

£85,000

A leading international business with a key office near Woking is seeking to add a very experienced Lead Systems Engi...

READ MORE
W1siziisijiwmtcvmdcvmtavmtavndcvntgvmjy1l1cxc2laaulzswpjd01uy3znrff2twprdk1urxznelv2turrdk5etxhmm2rwy21vdwfulmpwzyjdlfsiccisinrodw1iiiwimzm1ede3mfx1mdazyyjdxq
VACANCY

Senior Support Engineer

Twickenham

£30,000

A well-established IT company in the Twickenham area, whose core business is IT network infrastructure and desktop su...

READ MORE
W1siziisijiwmtcvmdqvmjqvmtevmjavmjcvmtyvahixlmpwzyjdlfsiccisinrodw1iiiwimzm1ede3mfx1mdazyyjdxq
VACANCY

Payroll / HR Administrator

London

N/A

The Ashdown Group has been approached by a prestigious London attraction to assist them in their search for a Payroll...

READ MORE
W1siziisijiwmtcvmdcvmtqvmdkvntyvmtevnjm5l1dvcmsgagfyzgvymi1taw4ucg5nil0swyjwiiwidgh1bwiilcizmzv4mtcwi25lil1d
Advice

What to look for in the perfect application

There are few things more detrimental to a company than making the wrong hire for a critical role. A recent study by ...

READ STORY

W1siziisijiwmtcvmdcvmtavmtavndmvnduvnju2l1vudgl0bgvkms1taw4ucg5nil0swyjwiiwidgh1bwiilcizmzv4mtcwi25lil1d
Advice

How can you make your workplace more attractive to top talent?

Businesses are facing a challenge in trying to attract top talent to their workforces in the current economic climate...

READ STORY

W1siziisijiwmtcvmdcvmdqvmdcvntyvndkvmty1l0hpcmluzy1taw4ucg5nil0swyjwiiwidgh1bwiilcizmzv4mtcwi25lil1d
News

Skills gap ‘costing UK businesses £2 billion a year’

The skills gap is costing UK businesses more than £2 billion a year in higher salaries, temporary staff and recruitme...

READ STORY

W1siziisijiwmtcvmdyvmjkvmtevmdmvntuvnjk4l1dob29wcy5wbmcixsxbinailcj0ahvtyiisijmznxgxnzajbmuixv0
News

UK businesses ‘making bad hires in two-fifths of roles’

UK businesses are failing to hire the right person for two out of every five vacancies, a new report from the Recruit...

READ STORY

W1siziisijiwmtcvmdyvmjkvmdgvmzkvmtgvmtqxl0nvbgxhyi1taw4uanbnil0swyjwiiwidgh1bwiilcizmzv4mtcwi25lil1d
Insight

Should you be using social media in your recruitment strategy?

It has evolved into a particularly useful tool for companies looking to attract younger, tech-savvy candidates. Howev...

READ STORY

W1siziisijiwmtcvmdyvmjivmdkvmzmvmtuvodc3l1f1zwvucybtcgvly2gtbwlulmpwzyjdlfsiccisinrodw1iiiwimzm1ede3mcnuzsjdxq
News

Business responds to Queen’s Speech

This year’s Queen’s Speech follows a tumultuous period in British politics, with Article 50 being triggered and a sna...

READ STORY