Although the terms sound similar, intangible assets and intangible capital describe two different, yet deeply connected, sources of business value.
According to international accounting standards, specifically the guidance outlined in IAS 38 on intangible assets, an intangible asset is a non-monetary asset without physical substance that is identifiable, controlled by the business, and expected to provide future economic benefits.
Common examples:
There are several types of intangible assets, and intangible assets including
All of which provide legally protected economic benefits.
These assets are measured, amortized or impairment-tested, and reported in financial statements.
Intangible capital refers to the broader, non-physical capabilities that make a business valuable, things like brand reputation, culture, customer loyalty, data, leadership depth, and systems.
Economic research shows that intangible capital represents a rapidly growing share of modern firm value, as highlighted in this NBER study on the rise of intangible capital. These non-physical drivers, skills, processes, reputation, customer-relationships, now account for more enterprise value than traditional tangible assets.
Think of it this way:
And this is where exit planning begins to take shape.
Maus breaks intangible capital into four practical categories you can strengthen long before you sell the business:
Leadership capability, skill depth, employee retention, culture, and succession planning.
A company with strong Human Capital isn’t owner-dependent and doesn’t fall apart when someone leaves.
The stability and strength of your customer relationships: retention, referrals, contract quality, and revenue diversity.
Your systems, processes, documentation, IP, data, and tech stack, everything that lets your business run without you.
This is a major driver of transferability and long-term enterprise value.
If you're unfamiliar with how buyers evaluate this characteristic, here’s a complete breakdown of transferable value and why it matters during an exit.
Brand reputation, partnerships, supplier relationships, reviews, and community trust.
Improving these four capitals moves the entire business toward exit readiness and helps owners command a higher valuation.
To understand how prepared your company is today, a structured readiness check helps you identify risks before buyers do.
This list of 15 exit-readiness checks is a good place to benchmark your current position.
Under IAS 38, an intangible asset must be:
Some intangible assets are amortized on a straight-line basis over their useful lives, while others with an indefinite useful life are not amortized at all, they are tested for impairment as part of standard financial reporting requirements under IAS 38.
Examples that qualify:
Brands and internally built goodwill generally cannot be capitalized—even though they contribute heavily to economic value. That’s why intangible capital is often the bigger driver of valuation, even if it’s invisible on the balance sheet.
WIPO also notes that strong IP protection (patents, trademarks, copyrights) reinforces competitiveness and creates enforceable economic rights, strengthening buyer confidence.
The stronger your intangible capital, the higher your enterprise value—because buyers can clearly see:
And most importantly:
They can see the business thriving without the owner.
That’s the foundation of a premium valuation.
This is where strong strategic planning pays off.
If you need a framework to align your goals with operational execution, this guide on the benefits of strategic planning explains how it drives enterprise value:
You can quantify intangible capital by tying it to:
If you want to connect these improvements to valuation, this guide explains how:
Modern buyers aren’t just purchasing your financial performance, they’re buying:
These intangibles, assets and capital, shape the business’s durability, worth, and exit outcome.
If you’re preparing for a future transition or want to measure your value drivers today, Maus makes this process simple through assessments, dashboards, and advisor-led planning.