Data Driven Decisions

Chapter 9What Intangibles Matter Most for Corporate Valuation

Part I of this book is titled “Intangible Assets” and in Chapter 4 we discussed how to define intangible assets and exactly what they are. In Chapter 5, we dealt with how to value intangible assets and how internal and external factors influence that valuation. Chapter 5 also explored how to put these defined and valued intangible assets to work inside a business in terms of utilizing them to drive corporate valuation and also, of course, in business operations scenarios. Soon, we will arrive at Part II.

Part II will deal specifically with the tools that will give you the outcomes we are exploring regarding valuing intangible assets. But first, let us deep dive into valuation so the tools in Part II will be more relevant.

We will review what constitutes a company valuation, why they matter, and how they differ among different kinds of companies and in different scenarios. We will address items directly related to intangible assets, and we will identify some items that you must consider when developing valuations, including some that are not related to intangible assets.

So, what intangibles matter most when it comes to business valuation? Throughout the book, we have anecdotally reviewed many intangibles, such as the good‐lookingness of an executive team, daily active users, trademarks, patents, copyrights, and other various identifiable and unidentifiable intangibles.

The intangibles that matter to a valuation are ...