as published in Stout Risius Ross, Fall 2014 Journal
How do you value something you cannot see?
That is exactly the problem of valuing goodwill in divorce. Many businesses, particularly service businesses, are worth more than their hard assets and cash reserves. They have a significant intangible value associated with the business’s reputation and related ability to generate substantial income into the future for its owners. Valuing these kinds of companies is really about figuring out what this “invisible” asset is worth.