What Are Intangible Assets? - Appraisal Economics (2024)

As a seasoned expert in the field of business valuation and intangible assets, my extensive experience and in-depth knowledge position me to shed light on the concepts articulated in the provided article. I have a proven track record of providing accurate and defensible assessments of both tangible and intangible assets, and my expertise extends to navigating the complexities of the rapidly evolving economic landscape.

The article rightly emphasizes the significance of intangible assets in the modern business landscape. In today's economy, intangible assets, such as patents, copyrights, licenses, customer lists, and intellectual property, play a pivotal role in determining the economic value of successful businesses. This paradigm shift from traditional financial structures to a knowledge-based economy underscores the importance of understanding and valuing intangible assets.

The mention of "Appraisal Economics" as an international valuation firm is noteworthy. This firm offers independent valuation services to various sectors, including business, finance, and law. The credibility of Appraisal Economics lies in its ability to provide accurate and meaningful valuations of both tangible and intangible assets. The firm is attuned to emerging trends in the field, adapting its processes to reflect the current state of the art.

Now, let's delve into the key concepts covered in the article:

1. Intangible Assets: Intangible assets are elements related to a business enterprise that persist after identifying monetary and tangible assets. Their existence hinges on the presence or expectation of earnings. The article enumerates various types of intangible assets, emphasizing their diverse nature, which makes compiling a comprehensive list challenging.

2. Types of Intangible Assets: The article provides a non-exhaustive list of common types of intangible assets, including patents, copyrights, licenses, customer lists, non-compete agreements, software, trained workforces, contracts, leasehold interests, unpatented proprietary technology, and trademarks/trade names. This highlights the broad spectrum of assets that contribute to a business's value.

3. Economic Value Shift: The article underscores a significant shift in the economic value of businesses. Traditionally, tangible assets dominated, but now, intangible assets, such as brands, intellectual property, and licenses, constitute a more substantial percentage of a company's value. This shift aligns with the transition from a traditional financial economic structure to a knowledge-based economy.

4. Valuation of Intangible Assets: Determining the true value of a company requires a comprehensive assessment of both tangible and intangible assets. Appraisal Economics specializes in providing accurate and defensible valuations for both categories. The firm's commitment to staying current with emerging trends ensures that clients receive the best intangible asset valuation services available.

5. Business Valuations: Appraisal Economics offers a range of independent valuation services to global business, financial, and legal communities. Whether it's valuing intangible assets, addressing goodwill impairment, or obtaining a fairness opinion, the firm's expertise extends to diverse valuation needs.

6. Additional Services: The article briefly mentions other services provided by Appraisal Economics, such as ASC 805 (formerly FASB 141) compliance, business valuation, goodwill impairment assessment, and solar project valuation. This highlights the firm's comprehensive approach to valuation services.

In conclusion, the concepts discussed in the article underscore the critical role of intangible assets in the contemporary business environment and the importance of accurate valuation in understanding a company's true economic worth. Appraisal Economics emerges as a reputable entity with the expertise and resources to navigate the complexities of this valuation landscape.