Tangible vs. Intangible Assets

Fixed assets are long-term pieces of property owned by a business. They can be in the form of tangible assets or intangible assets. Learn the difference between the two and how they affect your business valuation.

Tangible Assets

Tangible Assets are the physical property of your company. This can include equipment, buildings, vehicles, and all other tangible pieces involved in the day-to-day running of your business. Oftentimes these tangible assets can depreciate in value over time.

Intangible Assets

Intangible assets are non-physical property that belongs to your company, such as brand names, intellectual property, and patents. This can also include the business’ reputation, which is difficult to valuate, but is still a big aspect of a company’s worth. However, this can mean the difference between the business’s monetary worth and its selling price. Goodwill is also an important intangible asset. While it does not effect revenue, goodwill can help determine the value of intangible assets like reputation.

It is important to take inventory of all of your fixed assets in order to put a price tag on the business. An M&A intermediary can help you determine the value of your business by establishing the worth of your assets. Contact one of our professionals today.