Healthcare Valuation: The Financial Appraisal of Enterprises, Assets, and Services, Volume 2

CHAPTER 14

The Valuation of Tangible and Intangible Assets

14.1 Current and Future Trends Regarding Tangible Assets

14.1.1 Regulatory Environment Related to a Tangible Asset Transaction

14.1.2 Reimbursement for Tangible Assets

14.1.3 Competition in the Tangible Asset Market

14.1.4 Technology in the Tangible Asset Market

14.2 Classification and Valuation of Tangible Assets

14.2.1 Classification and Valuation of Tangible Real Property

14.2.2 Classification and Valuation of Tangible Personal Property

14.3 Current and Future Trends Regarding Intangible Assets under the Four Pillars: Regulatory, Reimbursement, Competition, and Technology

14.4 Classification and Valuation of Intangible Assets

14.4.1 Classification and Valuation of Intangible Real Property

14.4.2 Classification and Valuation of Intangible Personal Property

14.5 Conclusion

14.6 Key Sources

14.7 Acronyms

Healthcare industry transactions often consist of not only the transfer of going-concern enterprises, but in many cases the transfer of ownership of specific assets, which are usually classified in two general categories: tangible and intangible. Tangible assets may be defined as “physical assets (such as … inventory, property, plant and equipment, and so on),” as well as financial assets, for example, cash, accounts and notes receivables, prepaid expenses, and intercorporate investments.¹ In contrast, an intangible asset may be defined as:

[a] nonphysical business asset that grants certain rights and privileges ([e.g.,] ...