ValuAdder Business Valuation Blog

Business valuation tips, updates and advice. Pick up a few suggestions on how to value a business. Feel free to browse the contents or share your thoughts by leaving a comment.

Our customers asked and we have responded – ValuAdder 3.5 business valuation software now lets you calculate the value of business goodwill directly. Featuring the time-honored Capitalized Excess Earnings business valuation method, ValuAdder Business Goodwill Tab does this important calculation for you.

You will find this very handy in a number of common business valuation situations:

  1. When allocating the business purchase price among the business tangible assets and goodwill. This has important tax implications when buying or selling a business.
  2. To clearly demonstrate the value of business over and above its tangible asset base.
  3. As a reliable cross-check of business value results you obtained from the other business valuation methods.

While knowing the value of business goodwill is important for all business owners, it is especially so for owners of professional practices, consulting businesses and technology-based companies.

Frequently, the value of business goodwill and other intangible assets far exceeds the value of the tangible assets for these firms. Since goodwill may represent a large part of the total business value, its accurate measurement is essential.

ValuAdder comes complete with the Business Goodwill Tab to calculate your business goodwill, worksheets to develop all the inputs you need, and a Tutorial which explains how this business valuation method works. You will find some useful insights there, including how to handle the situations with negative goodwill!

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