An intangible asset which provides a competitive advantage, such as a strong brand, reputation, or high employee morale. In an acquisition, goodwill appears on the balance sheet of the acquirer in the amount by which the purchase price exceeds the net tangible assets of the acquired company.

Use goodwill in a sentence

Often times when purchasing a company's assets the amount paid for Goodwill far exceeds the value of its physical assets.

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During company evaluations a supervisor noted one workers over achieving goodwill and his value to the company as an asset.

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My company bought another company out of bankruptcy that had no assets other than a strong brand because we felt the goodwill the sale would produce would be an incredible asset for our company.

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purchase acquisition allocation of purchase price