
Marquee Asset
A marquee asset–also referred to as a "flagship asset" or "crown jewel"–is a company's most prized possession. A company with a coveted marquee asset may become a target for a bigger rival, or a rival with deep pockets, even if the other assets in the company's portfolio do not amount to much. However, a small firm with a marquee asset can run the risk of a hostile takeover because larger firms with more resources may seek to acquire and utilize this asset. A medication with sales in the hundreds of millions of dollars that belongs to a relatively small biotechnology firm would be considered that company's marquee asset. 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.

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



Understanding Marquee Assets
Marquee assets are generally a feature of smaller companies that have limited assets in the areas of resources and biotechnology, rather than large, diversified companies. The mineral property of a junior exploration company that has significant mineable resources might be considered its marquee assets. A medication with sales in the hundreds of millions of dollars that belongs to a relatively small biotechnology firm would be considered that company's marquee asset.
A company is generally unwilling to part with its marquee asset unless it is in dire financial straits. However, a small firm with a marquee asset can run the risk of a hostile takeover because larger firms with more resources may seek to acquire and utilize this asset. In some situations, the buyer may shut down the smaller company's operations after extracting the marquee asset. Management at the company in possession of the marquee asset may seek to preempt this risk through a "crown jewels" defensive maneuver. This maneuver involves the company selling off its marquee asset to prevent a hostile takeover.
Example of Marquee Assets
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. A company's patented technology can also be considered marquee assets. The manufacturing process used by a company to create its products can also be considered marquee assets. Items that are difficult to reverse engineer and mass-produce are more often considered marquee assets.
The knowledge and connections of a key individual within the company might also be considered marquee assets. A company might be built around the reputation and business relationships that a key individual has developed over time.
The aptitude of an individual in a specific field can also be a marquee asset: an understanding of coding, product design, or even their ability to attract other talented professionals to the team. For some companies, brand names and brand recognition are marquee assets.
Related terms:
Accounting
Accounting is the process of recording, summarizing, analyzing, and reporting financial transactions of a business to oversight agencies, regulators, and the IRS. read more
Bottom Line
The bottom line refers to a company's earnings, profit, net income, or earnings per share (EPS). Learn how companies can improve their bottom line. read more
Crown Jewels
Crown jewels refer to the most valuable unit(s) of an entity as defined by characteristics such as profitability, asset value, and future prospects. read more
Dead Hand Provision
A dead hand provision is an anti-takeover strategy that gives a company's board power to dilute a hostile bidder by issuing new shares to everyone but them. read more
Diversification
Diversification is an investment strategy based on the premise that a portfolio with different asset types will perform better than one with few. read more
Hostile Takeover
A hostile takeover is the acquisition of one company by another without approval from the target company's management. read more
Invisible Assets
Invisible assets, aka intangible assets, are resources with economic value that cannot be seen or touched. read more
Pac-Man Defense
The Pac-Man defense is a defensive tactic used by a targeted firm in a hostile takeover situation. read more
Scorched Earth Policy
A scorched earth policy is a strategy designed to deter a hostile takeover by making the target company unattractive to the potential acquirer. read more