Understanding the valuation of intangible assets in tech deals

In a technology M&A deal, whether you are acquiring or selling a tech or software business, valuation rarely hinges on a single dimension. Financial performance, growth efficiency, and cash flow durability remain the backbone of any transaction. In practical terms, this means metrics such as revenue and ARR, retention as a proxy for revenue quality, margin structure, and capital intensity continue to anchor how buyers price risk. However, alongside these tangible indicators sits another layer of value, one that does not always surface cleanly in financial statements and may even remain invisible if it is not properly understood or articulated:…

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