goodwill


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goodwill

n. the benefit of a business having a good reputation under its name and regular patronage. Goodwill is not tangible like equipment, right to lease the premises, or inventory of goods. It becomes important when a business is sold, since there can be an allocation in the sales price for the value of the goodwill, which is always a subjective estimate. Included in goodwill upon sale may be the right to do business without competition by the seller in the area and/or for a specified period of time. Sellers like the allocation to goodwill to be high since it is not subject to capital gains tax, while buyers prefer it to be low, because it cannot be depreciated for tax purposes like tangible assets. Goodwill also may be overestimated by a proud seller and believed by an unknowing buyer. (See: sale)

goodwill

noun altruism, amity, benefaction, benevolence, brotherhood, charity, cheerful consent, cheerful willingness, commercial advantage, cordiality, countenance, customer approval, customer encourageeent, earnestness, established patronage, established popplarity, established reputation, favor, favorable disposition, favorable regard, friendly disposition, geniality, good name, good nature, good reputation, helpfulness, humanity, known name, munificence, patronage, philanthropy, proven name, public favor, public support, sponsorship, support, sympathy, tolerance, willingness
Associated concepts: impairment of good will, sale and transfer of good will

goodwill

the advantage or benefit that is acquired by the business beyond the mere value of its capital stock or property in consequence of the patronage it receives from its customers. For example, it is usual for a business to be sold on the basis of so much for the stock and so much for the goodwill. Goodwill can also be considered as the amount by which the value of the business as a whole exceeds the assets minus the value of the company's liabilities. In another sense, it is ‘the probability that the old customers will resort to the old place’.
References in periodicals archive ?
When there has been accounting for a purchase under generally accepted accounting principle, the other, specific elements just described have already been identified and valued, helping to isolate goodwill precisely.
For an individual to sell personal goodwill, the asset must (1) meet the definition of goodwill from a tax perspective and (2) be owned by an individual outside of the legal business entity.
Now in its fifth year of publication, the 2013 study continues to examine general and industry goodwill impairment trends observed through December 2012 and report the 2013 results of the annual goodwill impairment survey of FEl members.
Goodwill provides jobs, trains for jobs and helps connect people with jobs outside of Goodwill.
Over time, the guidance in ARB 43 was viewed as a choice between two acceptable methods: 1) systematically amortizing goodwill; or 2) not amortizing goodwill until there was evidence of a loss or limited life, and then amortizing goodwill or recording a loss.
Goodwill is the value of a business that is not directly attributable to assets and liabilities.
The equity-linked financing is aimed at reinforcing Goodwill Group's financial standing, the company said.
Goodwill sorts the donated computer equipment, which will be recycled through the Dell Asset Recovery Services value recovery program.
Before joining Goodwill Southern California, Silberman served as vice president of development for Partners in Care Foundation, a nonprofit organization headquartered in Burbank, which develops new models of health care and provides direct health and social services.
Thus, TEI recommends that the treatment of goodwill be harmonized for U.