Valuation of goodwill

Goodwill concerns the added value of an enterprise compared to the intrinsic value of the assets and liabilities. For that matter, so-called “bad will” can be concerned as well: in that situation the value of the enterprise is lower than its intrinsic value. The calculation of goodwill results from the determination of the value of the enterprise.

In case of an interest in a personal partnership, the goodwill is sometimes also determined in a direct way. The foundation for this calculation is the profit share allotted to the respective partner after normalisation for market based labour remuneration and cost of capital.

Business valuation is a complex process that requires applying specific expertise. Sman Business Value is one of the oldest specialised Dutch agencies in this field. We offer a future-oriented analysis, based on a treasure of branch-specific data and experience, as well as a realistic exploration of the future. We collaborate with large and smaller lawyers’ and accounting firms, and regularly act as court experts for the judiciary.

Partners and consultants of Sman Business Value are associated with the Dutch Institute for Register Valuators, as well as with the Dutch National Register for Legal Experts.