Creating Shareholder Value in the Supply Base, Gentex Corporation – Leveraging Intangible Assets Through Relationships – A Best Practices Case Study

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In 1998, Andersen LLP undertook a three-year study of 10,000 firms to determine the underlying drivers of value creation. The resulting research created a set of principles named Value Dynamics. Value Dynamics maps out the valuation capital that markets assign to a company’s tangible and intangible assets. Looking at the automotive sector, Gentex Corporation stands out in terms of its market capitalization (in relation to its revenue base and physical assets) and its allocation of asset valuation. Gentex leverages its intangible assets far differently than other automotive suppliers, and the results show in its financial statements and market capitalization.This case study focuses on the formal and informal communication channels as wellas the reward systems that Gentex employs to leverage its intangible assetsspecifically its employee-, supplier-, and customer-relations.

This study was prepared for Andersen LLP,