Marquee Asset

A marquee asset (also referred to as a "flagship asset" or "crown jewel") is a company's most prized advantage, one that is a highly visible symbol of its success and often the biggest contributor to its bottom line. A company with a coveted marquee asset may become a target for a bigger rival, or one with deep pockets, even if the other assets in its portfolio do not amount to much.

Marquee assets are generally a feature of smaller companies with limited assets in areas such as resources and biotechnology, rather than large, diversified companies. Examples of marquee assets could include a mineral property with significant mineable resources for a junior exploration company, and a drug with sales in the hundreds of millions of dollars for a relatively small biotechnology firm.

A company would generally be unwilling to part with its marquee asset, unless it is in dire financial straits. Therefore, since a healthy company with a marquee asset runs the risk of a hostile takeover, it may seek to preempt this risk through a "crown jewels" maneuver, which would compel the sale of the marquee asset in the case of a hostile bid.

Marquee assets may be tangible or intangible benefits to the company. For example, an algorithm developed by a company to decipher data and present that information in a structured fashion that is unique to its industry could be considered a marquee asset. Patented technology could also be considered marquee assets. The manufacturing process in which a company creates its products could fall within this description as well. This is especially true if items that are difficult to copy and mass produce.

The knowledge and connections of an individual might also be considered marquee assets. A company might be built around the reputation and business relationships they have developed. The aptitude of an individual in a specific field could also be a tangible asset. This may include an understanding of coding, product design, or even their ability to attract other talented professions to the team. A marquee asset could be the sales leads that the company possesses.

Often, when one company seeks to acquire another company, the goal is to gain access to or control of the marquee asset. In some cases, the buyer will shut down the company it purchased in order to extract the marquee asset and make it part of the overall operation. For some companies, brand names and brand recognition are marquee assets.