Personal vs. business goodwill: The appraisal challenges

Description

Abstract: One might associate business appraisals with accounting, yet, in truth, they’re worlds apart. Financial statements, for example, tell only part of the story, and intangible assets present even greater valuation challenges. Items such as patents, customer lists, leases and brand names can be readily identified and valued. But what’s left over — commonly referred to as “goodwill” — may require special treatment. This article compares two distinctive forms of goodwill: personal and business. (Updated 11/14/12)