Is there Goodwill in a Business that sells by Contract? How To Buy a Business

Goodwill is the value which ends up being paid for a business that has built up a regular clientele.  

It’s the difference between the value of the business’ cash flow and the value of it’s tangible assets.

But what if the goodwill is literally in the head of the owner of a business?  What if the profits are attributed to this person’s cunning as a shrewd manager or salesperson?

How does the buyer pay for goodwill if the loss of the owner may mean the loss of business?

This is particularly true of businesses that live or die by their ability to win contracts for trade work.

Watch as I discuss this particular issue:  https://youtu.be/V-ejWqEQL3c

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