How to prove goodwill value [templates]

Posted by James Price | JPAbusiness on 01-Jul-2020 02:00:00

Goodwill ­is a key component of business value, alongside factors such as working capital and plant and equipment.

Many people think of goodwill as an ‘intangible’ and therefore its value can’t be proved, but that's not necessarily the case.

Goodwill value relies on being able to prove the sustainability of a business’ earnings going forward.

In this blog we’re going to explain how record-keeping is a critical component of proving that sustainability, and provide some simple templates to get you started.

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Topics: Business Value, contracts, Business valuation, goodwill, work in progress, WIP, tendering, business sustainability

What is goodwill and do business buyers still pay for it?

Posted by James Price | JPAbusiness on 02-Oct-2019 02:00:00

Goodwill is an intangible value associated with a business.

As we have explained in other eBooks and blogs, stock, plant and equipment, and other fixed assets, are tangible items that can be relatively easily valued on a market.

Goodwill is intangible; essentially it is the risk premium around how and what business maintainable earnings (BME) will be delivered into the future if the business is acquired by someone else and run in basically the same way.

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Topics: Business Value, Buying a business, Selling your business, BME, Due diligence, Exiting your business, strategic value, selling a business, Business maintainable earnings, goodwill

Do business buyers still pay for goodwill?

Posted by James Price | JPAbusiness on 12-Dec-2018 02:00:00

Goodwill is an intangible value associated with a business and is based on the business' potential to provide a future flow of earnings beyond the current owner. 

Stock, plant and equipment, and other fixed assets, are tangible items that can be relatively easily valued on a market. Goodwill is intangible; essentially it is the risk premium around how and what business maintainable earnings (BME) will be delivered into the future if the business is acquired by someone else and run in basically the same way.

Continue reading...

Topics: Business Value, Buying a business, Selling your business, selling a business, goodwill

What is goodwill and why pay for it? [blog]

Posted by James Price | JPAbusiness on 28-May-2016 17:11:17

Goodwill is a measure of your business’ future potential – true or false?

Answer: False, but that doesn’t mean people won’t pay for goodwill.

What is goodwill?

Goodwill is an intangible value associated with a business.

As we have explained in other eBooks and blogs, stock, plant and equipment, and other fixed assets, are tangible items that can be relatively easily valued on a market.

Continue reading...

Topics: Business Value, Buying a business, Due diligence, selling a business, goodwill

 
Disclaimer: The information contained in this blog is general in nature and should not be taken as personal, professional advice. Readers should make their own inquiries and obtain independent, professional advice before making any decisions, taking any action or relying on any information in this blog. 
 
 

 

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