Intangible Assets

Nearly 85%* of a business's fair market value is comprised of intangible assets.

These assets include systems or procedures that a business has found successful in delivering their product or service. This may be called "goodwill", "branding", or "blue sky" but whatever it is called, it has value.

This value can be determined using various methods, but these methods should be consistent with documented standards.

According to the Internal Revenue Service (IRS) the trend of growing intangible assets to increase the fair market value of a business is becoming more common.

When intangible assets are present, they are interpreted and analyzed through the business' benefit or earnings stream.

Many businesses are growing their earnings stream and increasing their fair market value without adding tangible assets.

The SBA allows borrowers to lend against these intangible assets, while also securing the lender's loan position with a guarantee.

Determining the fair market value of a business's intangible assets takes a seasoned professional who follows a group of professional standards and is qualified to measure and determine this value.

*S&P 500 as of Jan 2014