And the implications are far-reaching. For instance, the value of a proposed merger can't be measured accurately without a way to quantify both tangible and intangible assets. In a more comprehensive sense, in order to address the disconnect between intangible and tangible values, businesses must learn to confront continuous change with continuous response, and that in turn requires new tools and procedures. Dynamic strategy replaces static long-term planning with a continuous feedback loop between the markets' view of value and corporate decision making. Continuous measurement quantifies the value of a company's options to allocate resources to the growth opportunities most likely to be rewarded by the capital markets.
Continuous disclosure keeps the capital markets informed of management's view of value.
The fact is, inaccurate valuation destroys value. The right approach, on the other hand, can mean striking gold by understanding how the markets view value, developing strategies and allocating resources accordingly, setting the markets' expectations appropriately and then delivering against them. FutureWealth expectations helps focus decisionmakers on the two key sources of value. To build a FutureWealth company, management must understand not only how to approach valuation, but also how to approach management. The longer the status quo prevails, the more valuable the business becomes.