You might miss out on the benefits of your business’s intangible assets if you don’t know what they are.
Tangible vs. Intangible Assets
Deciding on an asking price for your business can be tricky. You want to list a price that will benefit you financially without scaring away potential buyers. A valuation of your business’s assets is key in determining how much your company is worth.
It’s fairly straightforward to start totaling up the value of things like equipment, software, furnishings, property, and inventory. These are all concrete items you can see and touch so they’re considered tangible assets.
Intangible assets may include:
- List of loyal customers
- A reputable name in the community and/or industry
- A well-trained team of experienced employees
- Networks of key suppliers or investors
- Trade secrets (like secret recipes)
- Successful business strategies and systems
Because you won’t find any of these assets listed on eBay to get an idea of their market value, you might forget to include them in the selling price of your business.
Why Intangible Assets Matter
You should point out to your prospective buyer all the positive aspects of your company that contribute to a growing stream of revenue. The intangible assets may even account for a larger percentage of your company’s profit than the tangible ones do!
Highlighting those intangible assets can justify a higher asking price than you originally expected.
Get a Complete Business Valuation Before You Sell
Contact an experienced business broker in Little Rock, AR like Strategic M&A Advisors for professional help in valuing your business. We’ll ensure that you don’t overlook a single critical detail that impacts the overall success of your sale.
Posted on behalf of Strategic M&A Advisors