Commentary

I8.352 Factors relevant to valuing goodwill

IHT, trusts and estates

I8.352 Factors relevant to valuing goodwill

I8.352 Factors relevant to valuing goodwill

Because goodwill can disappear overnight, its durability is a major factor in assessing its value, and consequently in arriving at an appropriate number of years' purchase. In general, the other facts affecting the value are similar to those considered in relation to the valuation of a controlling interest in a company1. As in valuing shares, the valuer must estimate the maintainable level of future profits when valuing goodwill. It is one of the paradoxes of goodwill that the higher the super profit a business is making, the greater is the chance that competitors will

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