Valuation Glossary

Intangibles are non-physical assets that a company owns, which provide value and potential future benefits but do not have a physical presence. These assets can include intellectual property, brand reputation, trademarks, patents, copyrights, goodwill, and customer relationships.

Intangible assets are valuable assets that a business owns but cannot be physically touched or seen. They include things like patents, trademarks, copyrights, customer relationships, and brand reputation. These assets provide long-term benefits and contribute to a company's value and competitive advantage. Intangible assets are important for businesses and are recognized on their balance sheets. They need legal protection and management to preserve their value. Understanding and valuing intangible assets is essential for making business decisions and determining a company's worth.

An Initial Public Offering (IPO) is the process by which a private company offers its shares to the public for the first time and becomes a publicly traded company. This process allows the company to raise capital from public investors to fund expansion, pay off debt, or achieve other corporate goals.

Indefinite-life intangibles are non-physical assets that a company owns, which have no foreseeable limit to the period over which they are expected to generate economic benefits. Unlike finite-life intangibles, which are amortized over their useful lives, indefinite-life intangibles are not amortized but are instead tested annually for impairment.

Income statement reformulation involves reorganizing the information in an income statement to provide a clearer view of a company's financial performance and underlying economic activities.