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How Intangible Assets Work in a Business Valuation & How Financial Statements Are Adjusted For a Business Valuation

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How Intangible Assets Work in a Business Valuation

Intangible assets are those assets without physical form. These assets include intellectual property like patents, trademarks, and copyrights. They also can include contracts and licenses, technology, and customer relationships. 

No business valuation should be undertaken without considering the value of intangibles. This article discusses the different types of intangibles and how they provide value to a business. 

How Financial Statements Are Adjusted For a Business Valuation

Before a business valuation report is prepared, the company's financial statements are adjusted, to remove discretionary items and one-time occurrences, and to bring accounts to current market value.

thebalancesmb.com

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