goodwill


Also found in: Dictionary, Thesaurus, Medical, Financial, Acronyms, Encyclopedia, Wikipedia.

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 ?
In many valuations, for practical reasons not all these elements are separately valued but may sometimes be included to varying degrees in goodwill which is determined using a variation upon capitalized earnings or market indications of the business value from which various deductions are made to arrive at goodwill which can then be allocated between personal and enterprise.
Goodwill Industries of Southwest Florida is committed to serving people with disabilities and disadvantages by offering life-changing opportunities to achieve independence.
In holding for the taxpayer, the court found that Bross Trucking had no corporate goodwill at the time of the alleged distribution, that Bross's goodwill constituted all of Bross Trucking's goodwill, and that Bross did not transfer any of his goodwill to the company.
The graphic on page 54 captures the evolution of goodwill in the study from 2008 through 2012 to aid in assessing goodwill and goodwill impairment trends over time.
Twelve of Arkansas' 15 Goodwill career service centers have opened since Itzkowitz became president and CEO.
Permit goodwill to be amortized over an arbitrary period.
The opportunity to write off goodwill over a shorter period of time provides tax benefits but H M Revenue & Customs will look closely and consider what is "reasonable".
Goodwill Group's reputation was hurt after temp staff dispatching unit Goodwill Inc.
Shawn Dennis, Dell vice president of global branding, says, "Our alliance with Goodwill is designed to be scalable and we're confident it will eventually serve as a model other communities may voluntarily adopt.
Last year, Goodwill packaged more than 4 million CDs and produced 8,500 wooden pallets for Sony.
Likewise, the people at Goodwill Group, Origuchi's outsourcing firm specializing in routine temp work and home nursing care for the aged, claim that the company had only a couple of bad years as it launched a new business in the new market of home nursing.