Page 60 - Business Valuation for Estates & Gift Taxes
P. 60
Personal Goodwill Characteristics Corporate Goodwill Characteristics
of a product or service. company).
Sales largely depend on the The business is not heavily
shareholder’s personal rela- reliant on the performance
tionship with customers. of personal services by the
shareholder.
Product or services know-
how (or both), supplier rela- Company sales result from
tionships, and client rela- branding or name recogni-
tionships that rest primarily tion (or both), sales force,
with the shareholder. and sales contracts.
Shareholder is favorably Company owns contracts
recognized within the indus- with customers.
try.
The company’s name does
not include the sharehold-
er’s name.
The company intends to
create value by making ef-
forts to transfer knowledge,
resources, information, and
so on, to the company.
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