Valuation of goodwill

1. Valuation of Goodwill
By: Dr. Riya singh
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2. Meaning of Goodwill
• It is a good name or reputation earned by a firm.
• It is an intangible asset.
• It is the value of business over and above the value of its
assets.
• It is the difference between the purchase price and the
value of net assets.
• It has a positive impact on the future turnover and profits
of the business.
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3. Factors Affecting Valuation of Goodwill
1. Good Public Relation
2. Regular Customers
3. Quality Product in Reasonable Price
4. Management Skills
5. Location of Business
6. Good Relation with Suppliers
7. Employees
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