#14: How to Value and Protect a Company’s Goodwill and Its Intangible Assets

A company’s obvious tangible assets—inventory, receivables, equipment, facilities—represent only part of its total value. The less obvious intangible assets—goodwill, patents, customer lists, know-how, employment agreements, long-term contracts, market niche—represent the other part.

Sellers, buyers, and the IRS consider these intangible assets in valuing any business for any reason, and you should too.  But arriving at a specific monetary worth for these assets is complicated: Intangible assets carry little if any dollar value on the company’s financial statements.

Despite the complications, their value can and should be established, since it significantly impacts everything from the price you ask when selling your business to the tax you pay when transferring ownership to family members, heirs, and outside successors.

This Resource Report answers the following questions:

• What is goodwill and what are the 5 ways to value it?
• How will the IRS value my business today and after I’m gone?
• To maximize the value and selling price of my business, how do I integrate the goodwill value into 8 going-concern values for a final, weighted value for the entire business?
• After I’ve completed my valuation work, how do I protect my intangible assets (as many as 23 types of them) against misuse or theft by employees, salespeople, competitors, independent contractors, customers, suppliers, and other outsiders? And what about patents, trademarks, trade secrets, and copyrights?

Then we move to selling and buying businesses.

• How do you establish a value for a noncompete clause, employment or consulting contract, and sale of assets or stock?
• How do you structure the purchase/sale agreement?
• What are the 15 negotiation tools that will help you get the highest value and selling price for your business?

Price: $59.00   |   Pages: 45

Download