What percentage of my business value is likely intangible?

For many modern businesses, 70–90% of total enterprise value is now intangible. Brand, systems, client relationships, contracts, and management capability can outweigh physical assets by a wide margin.

What is an intangible asset in business valuation?

Intangible assets are non-physical assets such as brand, reputation, systems, client relationships, licences, intellectual property, and know-how. They are often the main drivers of profitability and future growth.

How do you measure intangible asset percentage?

We use Eric Jordan’s 25 Factors methodology plus Five Senses Inspection Reports to identify, weigh, and value intangible assets alongside tangible assets, building an evidence-based file that can stand up in negotiations and court.

Why is goodwill not enough to describe intangibles?

A single goodwill line rarely explains how value is created or defended. We break down goodwill into specific drivers: management, systems, clients, contracts, culture, and more, then connect them to both earnings and risk.

Intangible Asset Percentage Chart

Why 70–90% of enterprise value is intangible — and how we measure it with the 25 Factors and Five Senses Inspection Reports for Toronto and Ontario businesses.

Fee Range: $1,500 - $15,000 · Basic Average: $3,500

877 355 8004 | pindotca@gmail.com

Parameters Have Fundamentally Changed

Studies show enterprise value is now dominated by intangible assets. Many valuations still relegate these to a vague “goodwill” bucket. We don’t — we measure them.

Our proprietary 25 Factors Affecting Business Valuation identifies, measures, weighs, and values 100% of company assets for compliance with the Canada Income Tax Act and CRA fair market value expectations.

Like a Commercial Airline Captain — hands-on, decision-ready expertise.
Like a Head Surgeon — precision and accountability.
Like an Art Restoration Specialist — protecting irreplaceable value.

Typical fee range: $1,500 – $15,000 • Average fee: $3,500

Intangibles now 70–90% of total business value chart

International FMV Style Valuation — 25 Factors + Five Senses

Most valuators lack a formal method for intangibles. The 25 Factors integrate human capital, brand, processes, supply chain, clients, and more with tangible assets. Field-verified through Five Senses Inspection Reports for litigation-ready evidence.

Sight / Sound / Smell / Touch / Taste: tangibles assessed to corroborate intangible performance.
Owner-operator fluency: 10+ years hands-on experience required to apply the method properly.
Court-ready: documents support fair market value for CRA, disputes, divorce, expropriation, and more.

Glossary — Intangibles in Business Valuation

Intangible Assets: Non-physical assets such as brand, reputation, systems, client relationships, intellectual property, contracts, and know-how — often 70–90% of total enterprise value.
Intangible Asset Percentage: The proportion of total business value attributable to intangible assets versus tangible assets (equipment, inventory, real estate, etc.).
Goodwill: The residual intangible value after identifiable assets are measured. In our work, goodwill is not a vague plug number — it is supported by the 25 Factors and Five Senses evidence.
Enterprise Value: The overall economic value of the business as a going concern, including both debt and equity interests, and both tangible and intangible assets.
Fair Market Value (FMV): The price that would be agreed upon between informed, prudent parties, dealing at arm’s length, with no compulsion to buy or sell, and fully informed of relevant facts.
25 Factors Affecting Business Valuation: Eric Jordan’s methodology assessing purpose, risk, management, scalability, client base, systems, competition and more — used to identify and weigh both tangible and intangible value drivers.
Five Senses Inspection Report: A structured on-site inspection using all five senses to corroborate claims about systems, culture, quality control, safety, and brand delivery — strengthening the intangible asset evidence file.

Pricing

Professional business valuation in Canada, priced between $1,500 and $15,000. Most engagements average around $3,500, depending on size, complexity, purpose, and deadlines.