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Intangible Asset Valuation

How do you assess value? Do you use an outside service? Do you feel the re-alignment of intangibles provides the bang for the buck?

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Topic Expert
Keith Perry
Title: Consulting CFO and Business Operations A..
Company: Growth Accelerator
(Consulting CFO and Business Operations Advisor, Growth Accelerator) |

Wayne,

Yes to outside, and only for audit / tax purposes as appropriate.
When doing an honest valuation, the intangibles are either minimal or strategic in value, so I really don't care what is on the balance sheet. From a consumer's point of view, GAAP isn't at all valuable here.
However, GAAP exists, as does the IRS, so using an outside service makes sense (safe harbor and all that). I usually only run into this in PPA accounting, so I'm a little biased in that regard.
I don't care for "re-alignment", as I am annoyed when my financials shift for non-operating reasons. I don't think there is any value add there at all. However, I have known owners/founders who crave having the intangibles on there as evidence of value.

Cheers,

KP

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