Goodwill is often lumped with other intangibles in valuation because it can be difficult to separate the value of each intangible. At a base level, goodwill can be considered the value of having an established business, so that a buyer would not have to assemble the business and seek customers from the ground up. The value of a patent depends on its economic and legal lifespan. The value of a patent application depends on the strength of its claims. Many types of lists, such as customer or subscription lists, are often compiled for internal use, bought, or sold.
Lists are especially valuable if they represent ongoing business relationships.
For example, if a newspaper gets 80 percent of its advertising revenue from companies on a customer list, that list is a critical business tool. Values may be based on the cost to replace a list, or the repeat sales generated. Often these assets are not patented, and valuation must be made based on profit advantage or cost savings provided by the asset. The IRS allows certain losses to be carried back or carried forward. If a company has losses, they may be carried forward for a certain number of years to offset profits, resulting in a tax saving.