Publications

Intangible Assets: Unlocking the Hidden Value in Your Business Sale

Gabriel Hansen, Associate, MDN Group

When selling a business, most owners immediately think of tangible assets such as buildings, machinery, or inventory. However, in today’s market, intangible assets – the non-physical elements that drive brand strength, customer loyalty, and future growth – often account for the largest share of a company’s true value.

At MDN Group, we help business owners identify, value, and present these hidden strengths to potential investors or acquirers. Understanding and showcasing your intangible assets can significantly increase your sale price and attract the right type of buyer.

What Are Intangible Assets?

Intangible assets are non-physical resources that give your business a competitive advantage and support future profitability. Examples include:

• Goodwill and reputation

• Brand strength and market recognition

• Industry experience and specialist knowledge

• Customer and supplier relationships

• Intellectual property, such as patents, trademarks, copyrights, and designs

While they do not appear as physical items on your balance sheet, these assets are often the key drivers of long-term value.

“In many transactions we advise on, more than half of the total deal value comes from intangible assets,” – Andrew Volkov, Partner, MDN Group

How to Value Intangible Assets

The valuation of intangible assets requires a structured and transparent approach. MDN Group applies internationally recognised valuation standards to ensure accuracy and credibility. Common approaches include:

• Market Approach – Compares your asset to similar assets recently sold in your industry.
• Income Approach – Estimates the future cash flow generated by the asset and calculates its present value.
• Cost Approach – Estimates what it would cost to recreate or replace the asset from the ground up.
• Royalty Relief Method – Assesses the hypothetical royalty a third party would pay to license the asset.

Each method offers a different perspective, and a combination of approaches often provides the most reliable result.

Why Intangible Assets Matter When Selling Your Business

Intangible assets can significantly influence the price and structure of your business sale. Buyers are not just purchasing your current operations – they are investing in your future potential.

Elements such as a trusted brand, loyal customers, and a strong reputation can justify a premium valuation. Conversely, failing to highlight these assets can lead to undervaluation.

Your goal should be to help buyers visualise the growth potential of acquiring your business, not just what’s on the balance sheet today.

“Closing the Intangible Valuation Gap in M&A Deal Pricing” – how buyers and sellers often undervalue intangibles and how that gap can be addressed.

How to Prepare for Sale

To maximise value, it’s essential to build a strong case for your intangible assets. Consider:

• Gathering evidence that demonstrates brand strength, customer retention, or market share.

• Documenting intellectual property rights and proprietary processes.

• Highlighting client testimonials, media coverage, or industry awards that reinforce your reputation.

While intangible assets can be difficult to quantify precisely, presenting them clearly and confidently helps buyers understand your business’s true potential.

Different Buyers, Different Perspectives

Not all buyers value intangible assets equally. Strategic buyers may prioritise brand and customer base, while financial investors may focus on cash flow potential or scalability.

At MDN Group, we help match your business with the right buyers – those who recognise and are willing to pay for the full value of your intangible strengths. Our advisory process ensures that your business story is communicated effectively, highlighting how your assets align with each buyer’s strategic goals.

“Our role is to translate what makes your business special into measurable value that buyers can clearly see,” – Denis Stukalov, Managing Partner MDN Group

Partnering with MDN Group

Understanding, valuing, and articulating intangible assets requires both financial expertise and deep market insight. MDN Group combines investment banking discipline with hands-on business advisory experience to help you achieve the best possible outcome in your sale.

For a confidential discussion on identifying and maximising the value of your intangible assets, please contact our team at MDN Group. Together, we can uncover your business’s true value and position it for a successful transaction.

At MDN Group, we provide end-to-end corporate finance and strategic advisory services designed to help business owners realise full value during sale, merger, or acquisition processes. Our experts deliver independent valuations, capital structuring, and strategic transaction advice to help clients make informed, profitable decisions.
Learn more about our Corporate Finance Advisory services.

Our Mergers & Acquisitions (M&A) team supports clients through the entire deal lifecycle – from preparation and valuation to negotiation and closing. With deep sector expertise and access to an international network of buyers and investors, we help clients structure and execute successful transactions that meet their strategic goals.

Beyond transactions, MDN Group provides ongoing Strategic Consulting and business optimisation support, helping organisations enhance performance, improve governance, and unlock long-term shareholder value. Our integrated approach ensures that every client benefits from both financial precision and strategic foresight.