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Goodwill

The following provides a definition and meaning for the term Goodwill:

Definition - the strict definition

The established reputation of a business regarded as a quantifiable asset, e.g., as represented by the excess of the price paid at a takeover for a company over its fair market value.

Meaning - how it relates to pharmacy sales

Goodwill is an accounting concept meaning the value of an entity over and above the value of its assets. Goodwill can be defined as Intangible Assets - assets that you cannot see or touch, but have value associated with them. The term was originally used in accounting to express the intangible but quantifiable "prudent value" of an ongoing business beyond its assets, resulting perhaps because the reputation the firm enjoyed with its clients.

In pharmacy, goodwill relates to the branding of a site, the brand value of the business, signage, customer patronage, etc.



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