⬤ Business Valuation · US GAAP & Tax
Intangible Asset Valuation Services for
US Startups &
Businesses
Intangible Asset Valuation Services for
US Startups &
Businesses
Patents, brands, software and customer relationships often outweigh every physical asset you own. The moment you raise capital, sell equity, acquire a competitor or file a return that touches these assets, you need a defensible number. That is what an intangible asset valuation delivers.
Your most valuable assets often don’t appear on your balance sheet. The patent behind your product, the brand your customers trust, the software your team built, the customer relationships that drive recurring revenue – these intangibles frequently outweigh every desk, laptop and building you own. At CountSure, we value intangible assets for US startups and established businesses under the accounting and tax standards your auditors, investors and the IRS actually expect. For the wider picture, see our business valuation services.
The short answer: Intangible asset valuation is the process of determining the fair value of a company’s non-physical assets – patents, trademarks, customer relationships, developed technology and goodwill – using recognised income, market or cost approaches. US businesses need it most often for purchase price allocation after an acquisition (ASC 805), goodwill and indefinite-lived asset impairment testing (ASC 350), equity compensation such as a 409A valuation, tax reporting, financing and litigation.
3
valuation approaches – income, market, cost
12 mo
ASC 805 measurement period to finalise a PPA
Annual
ASC 350 impairment test for goodwill
⬤ Key takeaways
What every owner should know first
- Intangible assets are non-physical value drivers - patents, trademarks, trade names, customer relationships, developed technology, non-compete agreements and goodwill.
- Valuation is triggered by real events: an acquisition, a fundraise, equity grants, impairment testing, a tax filing, financing or a dispute - not routine bookkeeping.
- Three approaches govern the work — income, market and cost — and the right method depends on the specific asset.
- Under ASC 805, acquirers must separately identify and value intangibles in a purchase price allocation; anything not separately identified inflates goodwill.
- Goodwill and indefinite-lived intangibles are not amortised but must be tested for impairment at least annually under ASC 350.
- A poorly supported valuation invites audit deficiencies, SEC comment letters and restatements - accuracy protects your financials more than optimism does.
What Counts as an Intangible Asset?
An intangible asset is an identifiable, non-physical asset that carries economic value. Under US GAAP, an intangible is identifiable if it either arises from contractual or legal rights, or is separable – meaning it can be sold, licensed or transferred on its own or with a related contract. That test draws the line between assets you value separately and value that falls into goodwill.
The intangibles we most commonly value for US companies include:
Technology & IP
Patents, developed software, proprietary know-how, trade secrets and copyrights.
Marketing-related
Trademarks, trade names, brand and domain names.
Customer-related
Customer relationships, customer contracts and order backlog.
Contract-based
Licensing agreements, franchise rights and non-compete agreements.
Goodwill
The residual value capturing assembled workforce, synergies and going-concern value that cannot be separately identified.
This distinction is not academic. In an acquisition, every dollar of value you fail to assign to an identifiable asset gets swept into goodwill – which carries very different accounting consequences, explained below.
When Do You Actually Need an Intangible Asset Valuation?
Most owners don’t wake up wanting a valuation – a specific event forces it. Knowing which trigger you face tells you which standard applies and how rigorous the work must be.
Purchase Price Allocation · ASC 805
You've acquired a business
US GAAP requires you to identify, measure and record the fair value of every identifiable asset acquired and liability assumed. This purchase price allocation is mandated by ASC 805, with fair value measured under ASC 820, and the residual recorded as goodwill. ASC 805 allows a measurement period of up to 12 months to finalise the allocation. Under-identifying intangibles overstates goodwill and raises future impairment exposure; over-allocating to short-lived assets accelerates amortisation and depresses near-term income.
Impairment Testing · ASC 350
You carry goodwill or indefinite-lived intangibles
Goodwill is not amortised; instead it is tested for impairment at least annually, or sooner when a triggering event occurs. Testing happens at the reporting-unit level - not the consolidated company - comparing the unit's fair value against its carrying value, with any shortfall recorded as an impairment charge capped at the goodwill allocated to that unit. Once recognised, a goodwill impairment loss cannot be reversed.
Equity & Fundraising
You're granting equity or raising capital
Startups issuing options need a defensible value for the equity granted, and investors in diligence want to understand what they're paying for. Intangible-heavy companies - software, life sciences, consumer brands - hold most of their worth in assets that need specialised valuation, not a book-value read.
Financing & Litigation
You're in financing or litigation
Lenders may value IP as collateral, and disputes - shareholder disagreements, damages claims, divorce, bankruptcy - routinely require an independent, defensible value for specific intangibles.
Tax & Transfer Pricing
You have a tax or transfer-pricing obligation
Intangibles surface in taxable asset acquisitions, in allocating purchase price for tax purposes, and in cross-border transfer pricing when IP moves between related entities. These filings demand valuations aligned with tax rules, which don't always mirror the GAAP figures.
Not sure which trigger applies to you?
CountSure identifies the standard that governs your case and scopes the work correctly the first time.
How Intangible Assets Are Valued
Every credible valuation rests on one of three approaches. A qualified valuer selects the approach that fits the specific asset and the purpose – and often uses more than one as a cross-check.
In practice, a single purchase price allocation may use all three: the multi-period excess earnings method for customer relationships, relief-from-royalty for a trade name, and the cost approach for internal-use software. The discipline lies in matching method to asset and documenting every assumption – discount rate, useful life, growth and royalty rate – so the conclusion is reproducible and defensible, consistent with the ASC 820 fair value hierarchy and AICPA guidance.
⬤ What You Receive
What Our Engagement Delivers
The same company can carry two valuations depending on which side of the table you sit on. The methods overlap, but the emphasis differs.
Analysis & Method
Report & Support
⬤ Why CountSure
Why Choose CountSure
Intangible asset valuation sits at the intersection of accounting, tax and valuation judgment – exactly where CountSure operates. Your valuation isn’t produced in isolation from the financial-reporting and tax consequences it drives; it’s built with both in view.
US CPA-supervised firm
We work hands-on with startups, established businesses and CPA firms across the country, with leadership combining a US CPA credential with deep valuation expertise.
Audit-ready from the outset
We deliver reports that are defensible and well-documented - because we understand what auditors test and what regulators question.
Cross-border capability
For US subsidiaries of foreign parents or foreign-owned US entities, we handle valuations spanning more than one jurisdiction without handing you to a second firm.
Reporting & tax in one view
Your valuation is built with the financial-reporting and tax consequences it drives fully in view - not produced in isolation.
Expert's Insights - Parth Shah, Managing Director
(CPA-US, FCA, RV-S&FA, DISA)
The most expensive mistake I see is treating purchase price allocation as an afterthought – something to sort out after the deal closes. By then, the data you need to value customer relationships or developed technology is harder to reconstruct, and acquirers default to dumping value into goodwill because it’s easier. That feels convenient until the first impairment test, when an inflated goodwill balance becomes a charge that hits earnings and raises questions you didn’t want. Engage the valuation early – during diligence, not after closing. It costs less, produces a cleaner allocation, and gives your auditor far less to push back on. A valuation isn’t a compliance box; it’s the foundation your financial statements stand on for years.
Frequently Asked Questions
It is the process of determining the fair value of a company’s non-physical assets — patents, trademarks, customer relationships, developed technology and goodwill – using income, market or cost approaches. It’s required for financial reporting, tax, equity, financing and litigation.
ASC 805 governs the initial recognition and measurement of intangibles when you acquire a business – the purchase price allocation. ASC 350 governs what happens afterward: subsequent accounting and impairment testing of goodwill and indefinite-lived intangibles. In short, ASC 805 is day one; ASC 350 is every year after.
Through one or more of three approaches: income (present value of future benefits, via relief-from-royalty or multi-period excess earnings), market (comparable transactions or assets) and cost (cost to replace or reproduce, less obsolescence). The right method depends on the specific asset.
Often, yes. Startups carry most of their value in intangibles – technology, brand and customer relationships – so any event requiring a value (an acquisition, an equity grant, a fundraise or a tax filing) will likely require valuing those intangibles specifically, not book value.
You can attempt it, but a self-prepared valuation rarely survives audit or regulatory scrutiny and can invite deficiencies, comment letters and restatements. For anything touching your financial statements or a tax return, an independent, standards-based valuation is worth far more than it costs.
It depends on transaction complexity and the number of intangibles – a straightforward engagement moves faster than a multi-asset, cross-border allocation. The fastest way to get a realistic timeline is to talk it through with us.
Get Started
Get Your Intangible Assets Valued Right
Whether you’ve just closed an acquisition, need to test goodwill for impairment, are granting equity, or are heading into financing or a dispute, the value of your intangible assets must be defensible before anyone asks. CountSure builds valuations that hold up – to your auditor, your investors and the IRS.
- Free 30-minute consultation with a CPA
- Fixed-fee, fully transparent pricing
- 100% remote - no travel or visa required
