Fixed and Intangible Assets

Michael Barbarita • Apr 04, 2022

As a CFO, I see companies who do not use their fixed assets productively. What I really see is equipment or machinery not being used at all! Assets that are not used or not productive need to be sold. Turn these non productive assets into cash. 


Most business owners sit on non-productive or no longer used fixed assets because they cannot get the price they think it deserves. Sell it and buy productive inventory or productive assets that will produce revenue! There is no point in sitting on assets you do not use. In addition, many business owners sit on unproductive or no longer used assets because they may use them some day. More times than not this is a bad decision because they end up never being used.


Not paying attention to unproductive and no longer used fixed assets can cause cash flow problems.


Something I do for clients is a review of the company's intangible assets. Specifically, trademarks and patents. Make sure all trademarks and patents are current and have not expired. Make sure you are aware of the expiration dates. Furthermore, make sure you understand the value that the trademarks and patents have. Be on the lookout for infringements of your trademarks and patents and address them by having your attorney write a letter to the violator.


If you do not have trademarks and patents, the CFO should challenge the business owner to see if special logos and processes should be trademarked or patented.  Patents and trademarks can give a company an unique competitive advantage. 


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