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- DictionaryGood·will/ˌɡo͝odˈwil/
noun
- 1. friendly, helpful, or cooperative feelings or attitude: "the plan is dependent on goodwill between the two sides"
- 2. the established reputation of a business regarded as a quantifiable asset, e.g., as represented by the excess of the price paid at a takeover for a company over its fair market value.
People also ask
Is goodwill an intangible asset?
What is goodwill & how does it affect a business?
What does goodwill mean?
What is goodwill in accounting?
Learn the various meanings and uses of the word goodwill, from a kindly feeling of approval and support to the value of a business's reputation and earnings. See synonyms, examples, word history, and related phrases of goodwill.
- What Is Goodwill?
- Understanding Goodwill
- Goodwill Calculation Controversies
- Goodwill Impairments
- Goodwill vs. Other Intangibles
- Limitations of Goodwill
- Example of Goodwill
- The Bottom Line
- GeneratedCaptionsTabForHeroSec
Goodwill is an intangible assetthat is associated with the purchase of one company by another. It represents the value that can give the acquiring company a competitive advantage. Specifically, a goodwill definition is the portion of the purchase price that is higher than the sum of the net fair value of all of the assets purchased in the acquisiti...
The value of goodwill typically arises in an acquisition of a company. The amount that the acquiring company pays for the target company that is over and above the target’s net assets at fair value usually accounts for the value of the target’s goodwill. If the acquiring company pays less than the target’s book value, it gains negative goodwill, al...
There are competing approaches among accountantsto calculating goodwill. One reason for this is that goodwill involves factoring in estimates of future cash flows and other considerations that are not known at the time of the acquisition. While normally this may not be a significant issue, it can become one when accountants look for ways to compare...
An example of goodwill in accounting involves impairments. Impairment of an asset occurs when the market value of the asset drops below historical cost. This can occur as the result of an adverse event such as declining cash flows, increased competitive environment, or economic depression, among many others. If a company assesses that acquired net ...
Goodwill is not the same as other intangible assets. Goodwill is a premium paid over fair value during a transaction and cannot be bought or sold independently. Meanwhile, other intangible assets include the likes of licenses or patents that can be bought or sold independently. Goodwill has an indefinite life, while other intangibles have a definit...
Goodwill is difficult to price, and negative goodwill can occur when an acquirer purchases a company for less than its fair market value. This usually occurs when the target company cannot or will not negotiate a fair price for its acquisition. Negative goodwill is usually seen in distressed salesand is recorded as income on the acquirer's income s...
If the fair value of Company ABC's assets minus liabilities is $12 billion, and a company purchases Company ABC for $15 billion, the premium paid for the acquisition is $3 billion ($15 billion - $12 billion). This $3 billion will be included on the acquirer's balance sheet as goodwill. For an actual example, consider the T-Mobile and Sprint merger ...
Goodwill represents a certain value (and potential competitive advantage) that may be obtained by one company when it purchases another. It is that amount of the purchase price over and above the amount of the fair market value of the target company's assets minus its liabilities. Goodwill is an intangible asset that can relate to the value of the ...
Goodwill is an intangible asset that represents the value of a company's name, brand, customer base, and other factors that give it a competitive advantage. Learn how to calculate goodwill, how to test for impairment, and how it differs from other intangibles.
- Marshall Hargrave
- 2 min
Goodwill can mean friendly and helpful feelings, or part of a company's value that includes things that cannot be directly measured. Learn more about the meaning, usage, and synonyms of goodwill with Cambridge Dictionary.
a feeling of benevolence, approval, and kindly interest. modifier resulting from, showing, or designed to show goodwill. the government sent a goodwill mission to Moscow. a goodwill ambassador for UNICEF. willingness or acquiescence.
Goodwill is an intangible asset that represents the value of a company’s reputation, customer loyalty, and overall brand image. It is the premium a buyer is willing to pay above the fair market value of a company’s net assets during an acquisition.
1 day ago · Goodwill is a friendly or helpful attitude towards others, or an intangible asset that reflects a business's reputation and customer relations. Learn more about the word's meaning, usage, and origin with Collins Dictionary.
In accounting, goodwill is an intangible asset recognized when a firm is purchased as a going concern. It reflects the premium that the buyer pays in addition to the net value of its other assets.
