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What is an Intangible?

Intangibles are assets in a business that cannot be physically moved or measured, but that are still property of the business. These can be things like a non-compete agreement or a client list. These are worth something to the business, but you cannot physically grasp them or possess them. Let's look at an example:




Katie has a very successful event planning business. She caters to large coporate clients which typically end up being repeat customers. Her specialty is helping the clients plan 5 to 6 large events per year. Even though Katie's actual physical asset list is low her business is worth quite a bit of money because of the client base. Simply Events purchased Katie's business for $3 Million. The price includes a $2,500,000 client list. This is an intangible asset.


Other examples of intangibles include patents and goodwill.