What’s the Difference Between Intangible and Tangible Assets?

Michael D. Moberly, Principal, Founder kpstrat and ‘Business Intangible Asset Blog

Tangible (physical – fixed) assets, please consider, broadly speaking, are subject to and distinguishable by one or each of our five senses, i.e., sight, touch, smell, taste, and hearing.

The ‘conventional physicality’ of a business’s tangible assets, leads many leaders, management teams, boards, and investors, et al, to presume they are calculable, measurable, understandable, and comparable, relative to their functionality, valuation, duration, and can be characterized – distinguished as having specific functions and purposes, ala contributions to a particular-process and achieving a desired outcome.

Intangible (non-physical) assets, on the other hand, while they are generally ‘observable and hearable’, they are unfortunately – inconsistently seen, heard, felt, recognized, or distinguished for their various contributory roles and value-adds across sectors, to products, services, brands, and transactions, etc.

This blog brings familiarity – receptivity to-for ‘business things intangible’ to elevate recognition, appreciation, and valuation to-for the various inputs – contributions of intellectual, structural, and relationship capital (individually, collectively, and collaboratively) converge as attractive – lucrative – competitive, and more sustainable business operating cultures.

In reviewing the 13 types-categories of intangible assets, as I have framed – described each in the next post, readers are obliged to reflect on when, where, why, and how each type – category of ‘business things intangible’ standing alone, or otherwise, are inevitably in play and relevant, across sectors, products, services, brands, and transactions.


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