All assets of a business wear out, and most of them are constantly renewed. To survive or grow, a business continuously needs to renew its range of products or services, to find new customers, to reposition its brands, and to streamline its organization and cost base. The need to innovate and adapt is permanent. Goodwill incorporates all intangible assets that cannot be separated yet. It describes the ability of a business – more precisely of its management and workforce - to cope with the challenges of the future, and to transform them into future identifiable assets.
Goodwill constitutes on average 51% of the intangible value of businesses. For the majority of businesses, the value of goodwill is larger than their primary intangible asset. Due to its nature, goodwill is frequently subject to scrutiny from auditors, equity analysts and courts. Goodwill impairments and abnormal goodwill are undesired outcomes of any valuation of goodwill.
of all intangible assets
The market approach is a corroborative method to value goodwill of businesses. Any valuation of goodwill can be supported and cross-checked with market data.
MARKABLES is the only vendor worldwide providing comparable data for the valuation of goodwill. MARKABLES has over 5,900 different cases with goodwill-related data on file.
For each goodwill case, MARKABLES reports detailed information including the following, and more:
Value of identifiable intangible assets and meaningful ratios
Goodwill-related excess earnings margin
Goodwill-related profit split
Acquiror value data
Goodwill per staff member
Value of goodwill
EV / revenues