Goodwill
/ˈɡʊdwɪl/
Definitions
- (n.) An intangible asset representing the value of a business's reputation, customer relationships, and other non-physical assets that enhance earning power.
The company recorded goodwill on its balance sheet after acquiring the smaller firm.
Commentary
Goodwill often arises in mergers and acquisitions and must be tested for impairment periodically.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.