Increasing Your Company’s Worth

A study by C.J. Patrick Company in 2001—and reiterated by Brand Finance in 2009—suggests that in most successful enterprises, only 25% to 33% of their value is derived from tangible assets like real estate, equipment, inventory and booked sales. A much larger portion, 66% to 75%, is in intangible assets. These assets include patents, trademarks and brand, to name a few.

This is precisely why we always insist that company valuations include those intangibles. But many valuation experts do not understand this process for appraisal. We do.