M&A Advisor Tip: Intangibles Matter

Intangible assets can play a significant role in your business value. While these may not take physical form, they can be legally identified and transferred.

It can be a hard exercise, especially when you’re so close to the business. But here’s a list of some possibilities to consider formally documenting.

  • Contracts, licenses, distribution agreements, permits
  • Customer lists and loyalty metrics
  • Intellectual property, e.g., patents, trademarks, copyrights
  • Location-rights (e.g., land, water, mineral)
  • Marketing assets, including testimonials and portfolios
  • Supplier base
  • Trade secrets and proprietary processes
  • Web presence, internet domains
  • Workforce in place, management team

Think about the value of intangible assets as you grow your business. Conduct an inventory and document how each one contributes to your company’s success.

We will look at these things when we perform an estimate of value, an intermediary opinion of value or formal valuation. We also can help you identify the intangible assets buyers care about most.

What our clients are saying...

“New Image Coatings, owners of Seal-Once, retained Business Transition Strategies in April of 2015 to locate a strategic buyer for the company. This was successfully completed during April of 2016 when we were acquired by UC Coatings of Buffalo, New York. Working at our side throughout this process were John Howe director, and Ken Schaefer, deputy director, of Business Transition Strategies. From the start of the project, where the information memorandum was developed, to helping us create the management presentation to acquirers, through negotiating the letter of intent and then the definitive agreement, they were there with me and our professional team every step of the way. It took nearly one year to the day to complete the project, but they never lost focus on my best interests and helped me keep my eye on business. This sale was very complex. It included transfer of trade secrets from the product developer, …as well as the transfer of a manufacturing and licensing agreement we had with the core compound producer… John and Ken marketed the company to a range of strategic acquirers, including a number of private equity groups and their platform companies, which ultimately resulted in an agreement with United Coatings… BTS’s level of expertise in the process and close attention to detail enabled us to successfully navigate the deal. I would recommend John Howe and Ken Schaefer to any company owner considering selling.”

- Hank Croteau

New Image Coatings