Managing a company’s assets for a buyout

As a small business prepares to sell to another company, owners must consider a wide range of factors that make up the company’s worth. A business’ assets are its primary indication of value.

There are two different kinds of assets: tangible and intangible. Tangible assets include equipment, machinery and various physical items that can be readily transferred into cash.
Intangible assets cannot be directly converted and include trade secrets, industry know-how and employee relations.

Nonetheless, both kinds of assets are vital in estimating the value of a company. If the transfer or sale of assets is a part of a business’ agreement to be bought by a larger company, the selling business must acquire a written agreement that documents the allocation of assets.

Sometimes, intellectual property rights are involved in asset transaction. This usually involves a higher degree of legal involvement and should be delegated to such authorities.

Businesses often overlook the value of their assets, especially intangible ones, but they are also part of a company’s overall worth and should be paid due attention.