Goodwill

Excess of the purchase price over the fair market value of the net assets acquired under purchase accounting. The New York Times Financial Glossary

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goodwill good‧will [gʊdˈwɪl] noun [uncountable]

ACCOUNTING the value that a business has in addition to the value of its Assets. Goodwill includes things such as the good reputation that a business has, the names of its products, and the good relations it has with its customers:

• The sale price also covers the goodwill of the business.

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   Goodwill is the excess price paid for a company above the value of its assets and may cover intangible assets such as brand names. It is normally only recognized in the accounts of a company when it acquires another business as a going concern for a price that is higher than the book value of its capital and reserves. Negative goodwill is a gain when the price paid for a company is less than the value of its assets.

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goodwill UK US /gʊdˈwɪl/ noun [U]

► COMMERCE the value to a company or organization of things that cannot be directly measured, for example, its good reputation or its customers' loyalty: »

Charitable endeavours are important to us in terms of goodwill.

► ACCOUNTING the difference between the value of a company's assets and what profit it is expected to make in the future, which is included in the price paid when it is bought or sold: »

We expect the business to raise at least $100,000 in goodwill.