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

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 ?
Reading the publications and cases dealing with the identification and valuation of personal versus enterprise goodwill, many methodologies have been used.
Nelson Mandela is one pioneer of goodwill "architects" in our contemporary world.
Goodwill is grateful to the many generous event sponsors including Publix Supermarket Charities and Sullivan Benefits.
"Because the products sold will be of higher quality, the pricing will reflect this and not be the standard pricing seen at a regular Goodwill retail store," she said.
The presence of personal goodwill can provide tax-efficient opportunities in merger-and-acquisition transactions by lowering corporate-level tax upon a sale or transfer of goodwill.
Goodwill Industries International is a network of 165 community-based agencies in the United States and Canada with a presence in 14 other countries.
The area's Goodwill is believed to be one of two in the country offering curbside pickup, along with one in Texas, Fisher said.
The court held that because Bross primarily owned the goodwill associated with Bross Trucking personally, the company did not own the goodwill and could not transfer it to him.
Duff & Phelps and the Financial Executives Research Foundation (FERF) first published the results of their Goodwill Impairment Study in 2009.
District Judge Michael Fanning, imposing a ninemonth community order, also told Goodwill to pay PS78 compensation to the detective and PS22 to the Co-op.
To analyze the performance of its students and the effectiveness of its programs, Goodwill Education previously relied on a system of manual data reviews that took as long as a week to complete for each school.