

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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