Marquee Asset

What Is a Marquee Asset?

A marquee asset-likewise alluded to as a "leader asset" or "crown jewel"- is a company's most valued possession. It is an exceptionally noticeable symbol of its prosperity and is in many cases the greatest supporter of its bottom line. A company with a sought after marquee asset might turn into a target for a greater rival, or a rival with deep pockets, even on the off chance that different assets in the company's portfolio don't amount to a lot.

Figuring out Marquee Assets

Marquee assets are generally a feature of smaller companies that have limited assets in the areas of resources and biotechnology, as opposed to large, diversified companies. The mineral property of a junior exploration company that has huge mineable resources may be viewed as its marquee assets. A drug with sales in the countless dollars that has a place with a moderately small biotechnology firm would be viewed as that company's marquee asset.

A company is generally reluctant to part with its marquee asset except if it is in critical financial straits. Nonetheless, a small firm with a marquee asset can run the risk of a hostile takeover on the grounds that larger firms with additional resources might look to gain and use this asset. In certain circumstances, the buyer might close down the smaller company's operations in the wake of extricating the marquee asset. Management at the company in possession of the marquee asset might try to seize this risk through a "crown gems" defensive maneuver. This maneuver includes the company selling off its marquee asset to prevent a hostile takeover.

Illustration of Marquee Assets

Marquee assets might be unmistakable or immaterial benefits to the company. For instance, an algorithm developed by a company to translate data and present that data in a structured fashion that is unique to its industry could be viewed as a marquee asset. A company's protected technology can likewise be viewed as marquee assets. The manufacturing system utilized by a company to make its products can likewise be viewed as marquee assets. Things that are challenging to reverse engineer and efficiently manufacture are all the more frequently thought about marquee assets.

The information and associations of a key individual inside the company could likewise be viewed as marquee assets. A company may be worked around the reputation and business connections that a key individual has developed after some time.

The aptitude of an individual in a specific field can likewise be a marquee asset: a comprehension of coding, product design, or even their ability to draw in other skilled experts to the team. For certain companies, brand names and brand recognition are marquee assets.

Features

• The marquee assets might be physical assets or intangibles, like goodwill or licenses.
• A marquee asset is a company's most valued and significant asset.
• The "crown gem" defense is a hostile takeover defense that includes the sale of the target firm's marquee asset to make it less alluring to the acquirer.