START ENGLISH Legal English Terminology Checker
🔷 Goodwill
➡️ When a company is being bought, it’s not just the physical assets that are of interest. Goodwill refers to the intangible value of a company that is determined by a company’s name, reputation, customer base, employee relations, and proprietary technology. A company’s tangible value is the value of its assets, but when buying a company, a buyer may pay a higher price than this value due to the goodwill of the company. The goodwill of a company does not always depreciate and is usually updated on an on-going basis.
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