Definition of goodwill letter

The “Invisible” Asset: Tax Treatment of Goodwill in a Dental Practice  April 11, 2016 – 10:22 am
Goodwill Letter

The intangible asset, commonly known as goodwill, is also commonly misunderstood. Goodwill is generally the largest single component of practice value and its proper tax treatment is not only misunderstood by dentists; but by their lawyers and accountants as well. Let’s review the definition of goodwill and how it should be treated for transition purposes.

Definition: Goodwill is the common term for all of the intangible things that cause people to come into your practice for dentistry. It includes, among other things: office location, staff, reputation, doctor resume and CE, office environment, specialization, if any, etc.

In short, all of the little things that cause folks to know you and respect you are part of goodwill. When valuing a practice, you may think that all of your technology and furnishings and tenant improvement are the largest component of value. In fact, goodwill usually comprises 50-80% of practice value.

We will leave the science and theory of valuation for another article; but suffice it to say that when we value a practice, we are determining the value of both the goodwill and the tangible assets.

As mentioned above, goodwill is usually the most significant portion of the purchase. It is therefore essential that we know how to treat this component, for tax purposes.

Source: Healthcare Blog

W. W. Norton The End of Faith: Religion, Terror, and the Future of Reason
Book (W. W. Norton)

You might also like:

What Obama Does Not Want You To See Or Know Video PSA
What Obama Does Not Want You To See Or Know Video PSA
Occupy Phase II - Mass Withdrawal and Follow Up
Occupy Phase II - Mass Withdrawal and Follow Up

Seeking Successful Biz Owners in Chicagoland

I'm seeking a successful businessperson in the Chicagoland area to act as mentor to me and my business partner. We both have well-paying corporate jobs, but we are looking for someone who owns or has owned business(es) to take us under her/his wing and show us the ropes. I foresee lunches, dinners, and get-togethers to casually discuss business ideas, financing, marketing, and interesting anecdotes.
My partner and I seek understanding and guidance in creating, buying, and maintaining businesses that require tangential management for moderate cashflow.
As a mentor, we see you as an individual that wishes to share your knowledge or groom someone to take over your business(es).
I look forward to hearing from you.

Buying a franchise is buying a name

Goodwill, sometimes management and accounting help, and usually marketing and operational help. A franchisee benefits from the knowledge of the franchiser. The learning curve is shortened.
There are many different levels of franchise, some more strict than others on operations, etc.
All of these things would cost an independent business owner a good bit of money. It's all a matter of deciding if it is cost effective for you, and if you have enough prior business knowledge in the industry to make it a go without a franchise, or if you need the help.

Chipworks Brings Patent Licensing Experts to IP Business Congress  — Manufacturing Digital
Chipworks invites delegates to stop by their exhibit booth (#12) at IPBC to discuss ways in which the Company's patent evaluation and infringement analysis services can help strengthen semiconductor, systems, and software patent licensing positions.

Memjet Appoints Chief Patent Counsel  — MarketWatch
"Ben's deep experience in global patent evaluation, filing and maintenance will serve us well as we accelerate our growth and support our OEM customers in the commercialization of Memjet technologies." Memjet assumed control of its intellectual …

PublicAffairs Daniel Patrick Moynihan: A Portrait in Letters of an American Visionary
Book (PublicAffairs)
UBI Soft My Word Coach
Video Games (UBI Soft)
  • The game evaluates your level, tracks and rewards your personal progression
  • 17, words
  • Large variety of games
  • DS-Wii connectivity
  • Includes 5 multiplayer games when linking the DS and Wii
W. W. Norton & Company In Fact: The Best of Creative Nonfiction
Book (W. W. Norton & Company)
Tricycle Press G Is for Googol: A Math Alphabet Book
Book (Tricycle Press)

Related posts:

  1. Definition of Goodwill a Business
  2. Definition of Goodwill Financial
  3. Definition of Goodwill GAAP