WHAT ARE INTANGIBLE ASSETS?

Intangible assets are everywhere within the organization. But most intangibles are not on the balance sheet and not accounted for on the company’s asset register or typically included in a business valuation.

The Increasing Value of Intangible Assets

Today, intangible assets such as trade secrets, research & development, proprietary software, and other intellectual property represent more than 85% of a company's value. In 1975, intangible assets accounted for only 17% of corporate value.

Today, intangible assets such as trade secrets, research & development, proprietary software, and other intellectual property represent more than 85% of a company's value. In 1975, intangible assets accounted for only 17% of corporate value.

Yet, these assets are typically not represented on a company's balance sheet or business valuation.

 

It’s vital for companies to fully understand both the on-balance sheet and the off-balance sheet intangible assets that are often key drivers of performance and value.