personal goodwill

professional profile

February 18, 2023

by a professional from University of Pennsylvania - The Wharton School in Sydney NSW, Australia

An topic that may be of interest is the importance of calculating personal goodwill in respect of business owners as opposed to commercial goodwill and making an informed decision on the best methods available.

Key question is whether this is an important aspect in considering the value of a business?

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Reply by a searcher
in Sheffield, UK
Tom, 'calculating personal goodwill' is indeed an interesting approach. I am not sure though what you meant in your post. Are you saying that calculating the value of the personal goodwill of a seller should decrease the company valuation? I think I would agree with that.
commentor profile
Reply by a searcher
from Curtin University of Technology in Perth WA, Australia
I interpreted the same way Marek. I am currently looking at a deal with the majority of the purchase price allocated to 'goodwill', whereby from my perspective it is predominantly personal goodwill. Valuable if he were to continuing operating the business, but how valuable to me (the buyer) is very uncertain.
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