Buying a Business – The intangible assets

In most business sale transactions, tangible assets such as stock, furniture and equipment are easy to identify, value and justify. It is usually the intangible assets such as tradeable intellectual property, goodwill and know-how that could make or break a business. Not only is it hard to accurately value, but it can also be significantly subjective. What a seller thinks has significant value can be of little value to a buyer and vice versa.

Tradeable intellectual property

Tradeable intellectual property can be sold separately from the business and does not necessarily indicate that the business has ownership over them. Four types of tradeable intellectual property can be registered with IP Australia: trade marks, patents, design rights and plant breeder's rights. The Attorney-General's Department manages copyright in Australia, which is free and automatic.