When examining the value of assets in a business, there are two types.
- Tangible Assets
- Intangible Assets
Assigning a value to Tangible Assets is relatively simple. These are physical assets you can see and feel. Finding the re-sale value of tangible assets can be researched online.
They are also easy to identify on the Balance Sheet. Cash, cash equivalents, accounts receivable, short term investments.
Tangible assets include:
- Furniture, Fixtures and Equipment
- Real Estate
- Accounts Receivable
- Service Contracts
- Employee Contracts
- Customer Contracts
Intangible Assets are more complicated when assigning a value. These are the essence of the business and in some businesses, worth far more then the tangible assets.
When Larkspur Business Brokers values a business, the most probable sale price is determined by several business valuation techniques, understanding that the assets of a business are relatively meaningless unless the assets being sold are profiting the business.