Accurate business valuations have always been difficult. This difficulty has only increased over the past decade with the rise of Intangible Assets. No industry has shown this more so than the fast-paced tech industry. The industry has been built on Intangible Assets such as patents and software, making traditional financial statements nearly useless when it comes to business valuations. This issue was outlined recently in an article from Bloomberg Business. The article,

Intangible Assets continue to be the greatest asset to today’s companies. Ocean Tomo, an Intellectual Property merchant bank, have released their 2015 Intangible Asset Market Value Study which values the S&P 500’s Intangible Assets at 84% of total value. This value represents 4% growth from 2005, 16% from 1995 and a staggering 52% growth from 1985. These figures highlight the importance of Intangible Assets. To compete in today’s global market, you must be actively develop