Glossary
With over 200 terms in both English and French, our M&A Dictionary is designed to help you better understand the key words and concepts related to the sale oe purchase of a business in Canada.
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Goodwill
« Back to Glossary IndexCategory: Business Valuation
The intangible value of a business that is attributable to factors such as its reputation, customer relationships, brand, intellectual property, and other non-physical assets that contribute to its earning capacity. Goodwill represents the premium that a buyer is willing to pay for a business above its tangible net assets. Goodwill is recorded on a company’s balance sheet when it is acquired through the purchase of another business. It’s important to note that while goodwill is a valuable asset, it is also subjective and can be challenging to quantify accurately. Factors such as changes in market conditions, regulatory environments, or management effectiveness can impact the value of goodwill over time.
« Back to Glossary IndexSynonyms:
Blue-Sky
French Translation: