{
  "title": "What is goodwill? Definition, formula and example",
  "url": "https://acquisitions.com/blog/what-is-goodwill/",
  "author": "Moran Pober",
  "publisher": "Acquisitions.com",
  "published": "2026-11-02",
  "updated": "2026-11-02",
  "section": "Glossary",
  "keyword": "Goodwill",
  "short_answer": "Goodwill is the part of the purchase price that is left after you subtract the fair value of every asset you can name and value on its own. It stands for things like reputation, staff and repeat customers. In a small business sale, it is often the largest part of the price.",
  "facts": {
    "Purchase price": "$2,000,000",
    "Inventory": "$50,000",
    "Equipment and tools": "$250,000",
    "Vehicles": "$200,000",
    "Customer list and service agreements": "$200,000",
    "Trade name": "$60,000",
    "Non-compete": "$40,000",
    "Total named assets": "$800,000",
    "Goodwill": "$1,200,000"
  },
  "sources": [
    "https://www.irs.gov/pub/irs-pdf/i8594.pdf",
    "https://www.law.cornell.edu/cfr/text/26/1.197-2",
    "https://viewpoint.pwc.com/us/en/homepage-external-/ib202101.html"
  ],
  "license": "Facts may be quoted with attribution to Acquisitions.com and a link to the url above."
}