What exactly is Goodwill?
Goodwill is an intangible asset of a business. Although there
are many varieties of goodwill, some of the more common examples
include a high traffic or exclusive location, a strong reputation,
brand name recognition, and great customer relationships.
And what's the difference between personal goodwill and
commercial goodwill?
Personal goodwill is attributed to an individual in the company
- most often the owner or a key employee, while commercial goodwill
(which is sometimes referred to as business goodwill or enterprise
goodwill) arises out of the features of the business itself,
irrespective of who the owners, management or employees are.
To elaborate, personal goodwill is what the owner or a key
employee personally brings to the company. For example, if the
company is named after the owner; if the owner or a key employee is
integral to the management of the company; if customer retention
and supplier relationships are largely
