Question Good day
what are the ways to value intangible asset (just need the names of technniques)? Also can things like systems / programs ie. iso program increase value of a company.
In valuing a business how can one simulate or check dozens of options to add or minus assets and how that changes valuation. For example if one add a process improvement process what impact do these have on the increase valuation. What are the different ways to go about simulating the change in value of a company via testing dozens of options.
Answer Hi Sam
An intangible asset is really no different from a physical asset - it's value is primarily found by its ability to bring in money. There are many ways in which the value is established, however the most common would be to determine how much actual money (revenue and profit) the IP actually generates.
If a process or system is part of a company and that process or system brings in revenue or saves money (increasing efficiency, streamlining) then the value of it is directly proportional to the money made or saved.
There is little outside of money-making that brings value to any business, since the business exists for that one purpose.
I advise others on how to value a business, how to sell a business, and how to buy a business, and give guidance on critical issues such as negotiation and growth strategies. I have knowledge and experience in real estate investing, including company entity structures and raising investment funds.
I have been a licensed agent and broker for over 12 years, selling commercial real estate, residential real estate, and businesses. I am a licensed building contractor of more than 20 years, and have both designed and built commercial and business structures, in addition to selling them.
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Education/Credentials Certified Business Broker, California Association of Business Brokers, AA communications and am a student at Lincoln Law School in Sacramento. I have done numerous trainings over the years in real estate investing, real estate sales, and marketing.
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