Full Answer

Data infrastructure functions as an intangible asset even though current GAAP doesn't recognize internally generated data on balance sheets. In M&A transactions, acquirers use the with-and-without valuation method—comparing the business with its data infrastructure versus without it. Companies with owned data warehouses, documented collection pipelines, and clean historical records consistently command 25-40% premiums. The asset value compounds over time because historical data cannot be recreated retroactively, making early investment a strategic advantage.