Equity Pirate, you are incorrect. Good will is a measurable asset of a business and it most certainly is recognized by the IRS and accounting practices. You shouldn't be passing along information about something you obviously know nothing about.
WRONG! Goodwill is imaginary, hypothetical and completely arbitrary. When you buy a used car, you don't buy the sellers Goodwill. In accounting Goodwill is not recognized, and the IRS doesn't recognize Goodwill either. A business owner is merely a caretaker of the business. If the selling price is more than book value, you're paying too much. The business isn't worth any more than that.
@TheEquityPirate No way, the business is worth what someone is willing to pay for it. The "book value" is a rough guide. For example... using your car analogy... you just try to buy a clean Honda Accord or a Chevy Silverado in December or January at "book" value when car dealers are stocking up their inventory for tax return business, you will pay much more. If you get a bid process going on your business you have for sale, you will blow away all book values. That's what I do.
Before selling your business you must get to know about important papers which you have to give to the buyers. Just checkout some agreement.
BusinessesBrokers 4 months ago
great!! very informative.
bacardiiiiiwantyme 7 months ago
Equity Pirate, you are incorrect. Good will is a measurable asset of a business and it most certainly is recognized by the IRS and accounting practices. You shouldn't be passing along information about something you obviously know nothing about.
cgrimes1010 2 years ago
WRONG! Goodwill is imaginary, hypothetical and completely arbitrary. When you buy a used car, you don't buy the sellers Goodwill. In accounting Goodwill is not recognized, and the IRS doesn't recognize Goodwill either. A business owner is merely a caretaker of the business. If the selling price is more than book value, you're paying too much. The business isn't worth any more than that.
TheEquityPirate 2 years ago
@TheEquityPirate No way, the business is worth what someone is willing to pay for it. The "book value" is a rough guide. For example... using your car analogy... you just try to buy a clean Honda Accord or a Chevy Silverado in December or January at "book" value when car dealers are stocking up their inventory for tax return business, you will pay much more. If you get a bid process going on your business you have for sale, you will blow away all book values. That's what I do.
label1877 1 year ago