GOODWILL CAN BE DEFINED AS
"THE EXPECTATION THAT A BUSINESSES CUSTOMERS WILL CONTINUE TO PATRONISE IT REGARDLESS OF WHO THE OWNER IS"
let us examine three different businesses;
a television network
Do you really care who serves you in the newsagency? Within reason you will be in the habit of using a certain newsagency and your habit will be ingrained. What you really like is that it is convenient and that it has a product you habitually need, such as a daily newspaper or bus card or lotto ticket. So long as the person who is serving you is efficient and friendly you won't change newsagencies.
but what about the hairdresser? sure it may be convenient, but what if your favourite hairdresser sells the salon and the new owner just doesn't cut your hair the same way?
Chances are you will move or try to find where your favourite cutter has gone!
How many years have you been watching the six oclock tv news on the same station? You may be stuck on Seven or your may be stuck on Two or Nine but chances are you are "rusted on" to one tv news service and you won't change easily!
Understanding goodwill hleps the tv networks chase ratings and the higher their ratings the more they can charge advertisers.
The business valuer network understands goodwill in all its forms (brand goodwill like channel nine, locational goodwill like a newsagency and personal goodwill like a hairdressing salon.
We can asses the value of your business's goodwill in the business sales marketplace.