What is the Value of Goodwill?

Understanding Goodwill as an Intangible Asset

The recognition of the intangible assets is an important consideration in a medical practice valuation. This identification of goodwill and intangible assets are an integral part of the valuation in a sale of a medical practice and often considered  in marital dissolutions.

In the case of marital dissolutions, the value or incremental value of the family owned business is part of the marital estate but value associated with employment agreements and non-compete agreements may be excluded depending on the jurisdiction.

Some of the reasons to conduct an intangible asset appraisal include:

• Sales Transaction Pricing and Structuring

• Tax Planning and Compliance

• Management Information and Planning

• Securing Cash Flow or Asset Financing

• Bankruptcy and Reorganization Assessment

• Litigation Support and Shareholder Dispute Resolution

• Marital Dissolution

• Categories of Intangible Assets can be related to:

• Patients (Lists, Charts)

• Contracts (Vendor, Insurance, Hospital)

• Data Processing (Data bases, Computers, Automated Systems)

• Employees (Trained and Assembled Workforce, Employment Agreements)

• Marketing (Trademarks,  Referrals, Network, Relationships)

• Location (Leaseholds, Certificate of Need)

• Goodwill (Reputation, Going-Concern)