
 David C Barnett Small Business and Deal Making M&A SMB
 David C Barnett Small Business and Deal Making M&A SMB Why Goodwill Matters When Buying & selling Business
 Oct 8, 2025 
 16:16 
***New Video Alert!
Everyone loves a bit of good cheer, but what exactly is Goodwill?
This week, some basic terminology and how it’s often misused when people are talking about buying and selling businesses.
Check it out in this week’s new video: https://youtu.be/p_F_OJt-iLY 
Cheers
See you over on YouTube
David C Barnett
#smallbusiness #mergersandacquisitions #M&A 
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In this episode, I will breaks down what goodwill actually is — from its accounting definition to its real-world meaning in business valuation. You’ll learn how goodwill impacts deal structure, financial statements, and sale prices, plus how to figure out where the goodwill actually resides in a company.
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CHAPTERS
00:00 Intro 
01:30 Definition of Goodwill | Accounting vs. Colloquial  
04:20 Why Goodwill Exists in Business Valuation  
06:30 When a Business Has No Real Goodwill  
09:00 Asset Value vs. Business Value Explained  
12:15 Example | Goodwill on a Balance Sheet  
15:30 How Goodwill Appears in Financial Statements  
18:00 When Sellers Overvalue “Goodwill”  
21:00 Understanding the Locus of Goodwill  
23:30 Goodwill in the Owner  
25:45 Goodwill in the Brand or Business  
28:30 Goodwill in the Location  
31:00 Risks of Non-Transferable Goodwill for Buyers  
33:45 Tools to Analyze Goodwill (Locus Calculator)  
36:00 Recap | When Goodwill Really Has Value  
38:00 How ALP Helps Buyers Analyze Deals  
40:00 Final Thoughts & BusinessBuyerAdvantage.com  
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#GoodwillInBusiness #BusinessValuation #BuyingABusiness #SellingABusiness #SmallBusiness #Entrepreneurship #BusinessAcquisition #BusinessBuyerAdvantage #BusinessFinance #BusinessDeals #BusinessStrategy #DavidCBarnett
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