From an economic perspective, an asset generates value because it has the potential to produce future profits.
According to this logic, a company’s wealth should not be measured solely by what it currently owns. In our experience, the analysis should focus on what enables the company to maintain its ability to generate revenue, grow, and sustain competitive advantages over the long term. This is why intangible assets have become so important in business valuation, investment, and mergers and acquisitions, emerging as one of the main drivers of an organization’s value.
Financial Reporting Standards, specifically NIF C-8, formally regulate intangible assets, defining the criteria for their recognition, measurement, and presentation on the balance sheet. When these assets are correctly identified and recorded, the company increases its equity value and strengthens its shareholders’ equity. This enhances its standing with investors, facilitates access to financing, and can represent a significant advantage in processes such as competitive bidding, where financial strength is often a determining factor.
Business Relationships as Intangible Assets
We often observe that companies generate value through assets that are not always identified or strategically leveraged. Among those we most strongly recommend analyzing for their tax potential are business relationships (customers and suppliers).
In addition to the impact on the company’s value, the proper identification of these assets can have significant effects on its tax structure. Under the Income Tax Law (LISR), certain intangible assets may be classified as deferred expenses or charges, allowing them to be amortized over several fiscal years. This can result in financial efficiencies that contribute to the organization’s strengthening and growth.
In order for an asset of this nature to be tax-deductible, it must strictly comply with the requirements for its recognition:
- It is identifiable: It must be separable from the business or arise from contractual or legal rights.
- The company has control over it: The organization has the power to obtain the future economic benefits arising from that asset.
- Generates future economic benefits: It will provide revenue, returns, or economic benefits to the company.
Compliance with these requirements is what distinguishes an ordinary business relationship from an intangible asset that can be identified, valued, and strategically leveraged by the company.
Don't ask yourself how much your company is worth today; ask yourself how much of the value it has built remains unrecognized.
An opportunity that companies have largely failed to take advantage of
In our experience, analyzing business relationships as intangible assets remains an under-explored practice in Mexico. As a result, many companies overlook legitimate opportunities for capitalization, even though they have spent years building relationships with customers and suppliers who actively contribute to value creation.
Part of the challenge lies in the fact that identifying, managing, and valuing these types of assets requires specialized analysis that is not typically part of traditional approaches to wealth, financial, or tax advisory services. As a result, opportunities with the potential to generate value for the organization often go unidentified or are not adequately capitalized upon.
Conclusion
Changes in the markets have forced companies to rethink how they view their assets and where their value truly lies.
A company’s market capitalization does not depend solely on the injection of new resources or the acquisition of tangible assets. It can also be strengthened by properly identifying and valuing those intangible assets that are already part of the business and that consistently contribute to revenue generation.
In this context, business relationships are no longer merely an operational component but have become strategic elements that can directly influence the value of the organization. As a result, more and more companies are taking an interest in these assets with the goal of better understanding their net worth, strengthening their financial structure, and more accurately reflecting the value they have built over time.
However, realizing their potential requires a technical analysis to determine their eligibility for recognition, their impact on the company’s valuation, and the options available for leveraging them financially and for tax purposes within the applicable regulatory framework. Correctly identifying these assets can provide organizations with an opportunity to more accurately reflect the value they have generated and strengthen their capitalization strategies.
