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Bob Hughes Answers: What Is The Goodwill Of Your Business?

Bob Hughes On Goodwill Selling A BusinessGoodwill is what a business owner has built into his business over the years that include:  Reputation, Telephone number, Logos or trademarks, Customer lists, Vender list, Branding, Lease value, Web page, Marketing materials, or any other intangible item that goes into the sale of the business.

Goodwill is the value placed on the continued relationship between a business and its' customers and venders.  Business flow and volume are based on the continued spirit of the business reputation in the community.  Buyers want to purchase the goodwill instead of starting from scratch.  It takes a lot of money to build a business over time.  The advertising, marketing, branding, and the experience of the customer base creates the goodwill.

Goodwill is not fluff that many buyers would like to believe, the tangible stuff is easy to buy but the goodwill is the real value of the business. Cash flow is generated not by the inventory, equipment and fixtures, it is the goodwill that makes the difference between a business being worth $100,000 and a similar business being worth $250,000.

The goodwill is the sweat equity that has been put into growing the business, never sell short on the goodwill you, the business owner, bring to a business.

Bob HughesAbout The Author:  Bob Hughes is a business broker in the Coachella Valley area assisting business buyers and sellers of small and mid-sized businesses and commercial real estate throughout the Palm Springs/Coachella Valley area, and San Diego County. You can reach Bob at Hughes Properties via phone at 760-323-8311.


Categories: BizBen Blog Contributor, Business Valuation Issues, Deal And Escrow Issues, How To Sell A Business, Selling A Business



  Helpful Resources To Assist In Selling And Buying California Businesses

Willard Michlin, CPA, Certified Fraud Examiner, Due Diligence Services

Willard Michlin, CPA #106752, offers buyers step by step training & assistance in doing Due Diligence Services when they are thinking of making an offer, or are in process of investigating a business purchase. He helps to determine the actual net profit even when there is cash. Call 800-864-0420.

Diane Boudreau-Tschetter: Escrow And Bulk Sale Services

California Business Escrow, Inc. is a full service independent escrow company serving all of California and has expertise in a wide range of escrows. Our team prides itself on providing an exceptional escrow experience. For more info phone Diane Boudreau-Tschetter at 888-383-3331 or 209-838-1100.

Helen Yoo: Escrow & Bulk Sale Services - Southern California

New Century Escrow, Inc. is a fully licensed & bonded independent escrow company. Over 20 years combined experience in handling bulk escrow transactions. Multi-lingual staff that speaks your language, including Korean, Chinese, Vietnamese. Call Helen Yoo direct at 626-890-1151.

Mark Chatow, Esq.: Legal Services For Buying, Selling Businesses

Mark has a broad range of small business purchase & sale experience from analyzing potential acquisition targets to successfully guiding buyers and sellers through the purchase & sale of small businesses. Mark can assist with contracts, negotiations, legal matters, etc. Reach Mark at 949-478-8393.

Joanne Weber, Broker - Preschool Specialist - Southern California

The Ryan Craig Company is in its 35th year as the recognized expert in Southern California, dealing exclusively in the sale of preschools, Montessori schools, day care centers, and private schools. Our extensive list of references speaks for itself. Phone Joanne at 818-760-3684 for more info.

Larry Larsen, Broker, Laundry Specialist - Orange, LA Counties

Larry Larsen, Realtor has over thirty years of experience in the sales, ownership, management, and construction of coin laundries. He is a licensed broker active in the sale of coin laundries, a licensed insurance agent specializing in coin laundry insurance. Phone Larry at 714-630-9274.

Peter Siegel, MBA - SBA Loans, Non SBA Financing Assistance

For over 25 years I have provided niche business purchase financial advisory and loan placement services with SBA and Non-SBA Loans, Retirement Plan Conversions, Private Investors, etc. Financing amounts available: $20K to $7MM. Call today to get pre-qualified or receive financing: 866-270-6278.

George Lanza, Business Broker, At Plethora Business Sales

Plethora Businesses, a division of A Premier In Services, Inc., is a Business Intermediary Consulting Firm headquartered in Orange, California. Plethora specializes in the listing and sale of small and medium sized private businesses.


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