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...

“It is a privilege to write a letter of recommendation on behalf of Business Transition Strategies. …As with any family business, negotiations need to be handled delicately and, as with any sale, both parties need to be satisfied with the end result. Quite frankly, without their help, this could not have been achieved. John Howe and Ken Schaefer skillfully analyzed the books and were able to bridge the gap between the sellers’ belief of what the company was worth and its actual worth. Their style is objective, straightforward, thorough and kind in the delivery of their assessment. After the sale was achieved to both parties’ satisfaction, John and Ken were hired to help with the adjustment of the acquisition and the financial health of the company moving forward. I can highly recommend this talented group of experienced business advisors to any company in need of clear and thoughtful company planning and adjustments.”

- Jane Longden

Decora