Intangible Asset Values in Healthcare Companies

Healthcare organizations rely on various intangible assets to create business value. Intangible assets are non-monetary, non-physical assets like goodwill, customer relationships, favorable contracts, noncompetes, and trademarks/tradenames. These assets are rarely sold independently, making finding market data related to their values challenging.

One helpful resource for valuing these intangibles is the BVR report "Benchmarking Identifiable Intangibles and Their Useful Lives in Business Combinations," which compiles purchase price allocations from 1,093 healthcare transactions in the NAICS 62 sector. This sector includes health care and social assistance businesses, such as hospitals, physician offices, and outpatient care centers.

A particularly insightful statistic in the BVR report is the average intangible value as a percentage of sold business value, which shows the average sales price attributed to intangible assets, rather than physical assets.

Another helpful statistic in the report is the average intangible value as a percentage of total intangible assets, which measures how much a specific type of intangible asset contributed to the total intangible asset value.

These data are helpful statistics for determining and testing intangible values in healthcare companies. The BVR report provides additional details and analysis.