Goodwill
Definition
An intangible asset that arises when a company is acquired for more than the fair value of its net identifiable assets. Goodwill reflects factors such as brand value, customer loyalty, workforce expertise, and synergies that are expected to generate future economic benefits.
Related Terms
Related FAQ
What is purchase price allocation (PPA)?
PPA is the process of allocating the total price paid in a business acquisition across the acquired company's identifiable tangible assets, intangible assets, liabilities, and goodwill.
Read full answer →What is the difference between goodwill and intangible assets?
Goodwill is the residual value paid above the fair value of all identifiable net assets in an acquisition. Intangible assets are specific, identifiable non-physical assets like brands, patents, and customer relationships.
Read full answer →An intangible asset is an identifiable non-physical asset that generates economic value — such as patents, brands, customer relationships, software, and proprietary data.
Read full answer →Put this knowledge to work
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