Goodwill Calculator
Goodwill Calculator
Component |
Description |
Purchase Price |
The total price paid to acquire a company or business. |
Fair Value of Net Assets |
The fair value of the acquired company’s net assets (assets minus liabilities). |
Goodwill |
The excess of the purchase price over the fair value of net assets, representing intangible assets such as brand value and customer relationships. |
Formula |
Goodwill = Purchase Price – Fair Value of Net Assets |
Purpose |
Used to calculate the value of intangible assets acquired in a business acquisition. |