{"id":5084,"date":"2022-01-06T04:00:00","date_gmt":"2022-01-06T04:00:00","guid":{"rendered":"http:\/\/im-22985"},"modified":"2023-01-11T11:13:20","modified_gmt":"2023-01-11T11:13:20","slug":"points-to-consider-when-valuing-goodwill","status":"publish","type":"post","link":"https:\/\/www.oneaccounting.co.uk\/points-to-consider-when-valuing-goodwill\/","title":{"rendered":"Points to consider when valuing goodwill"},"content":{"rendered":"<p>Valuing goodwill is a complex process and there are many different methods which can be used and that vary from industry to industry. Goodwill is&nbsp;a way of placing&nbsp;a monetary value on the business&#39;s reputation and customer relationships. Or as HMRC say in their guidance, in accounting terms, purchased goodwill is the balancing figure between the purchase price of a business and the net value of the assets acquired.<\/p>\n<p>HMRC&rsquo;s approach to valuation of goodwill suggests that there should be no expectation of a synergy-based value on an open market value basis unless synergy in a particular market is common place.<\/p>\n<p>HMRC&rsquo;s manuals state that when valuing the goodwill of a business the valuer should have regard to the following:<\/p>\n<ul>\n<li>the full sale and purchase documentation relating to the transfer of both tangible and intangible assets<\/li>\n<li>succession arrangements<\/li>\n<li>the valuation approach used &ndash; e.g., capitalisation of profits, super profits or a trade specific method<\/li>\n<li>the activities of the business and role of the owners within it<\/li>\n<li>the financial statements\/accounts (including the detailed trading and profit and loss account) for the 3 years before valuation<\/li>\n<li>any other relevant financial information<\/li>\n<li>appropriate yield and multiples of comparable companies and sectors<\/li>\n<li>the commercial and economic background at valuation date<\/li>\n<li>how the personal goodwill of the owner has been reflected in the valuation<\/li>\n<li>any other relevant factors.<\/li>\n<\/ul>\n<div style='font-size:smaller' class='im_source'>Source: HM Revenue &#038; Customs   Tue, 04 Jan 2022 00:00:00 +0100<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Valuing goodwill is a complex process and there<\/p>\n","protected":false},"author":1,"featured_media":5085,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[166,1],"tags":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Points to consider when valuing goodwill - One Accounting<\/title>\n<meta name=\"description\" content=\"Valuing goodwill is a complex process and there\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.oneaccounting.co.uk\/points-to-consider-when-valuing-goodwill\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Points to consider when valuing goodwill - One Accounting\" \/>\n<meta property=\"og:description\" content=\"Valuing goodwill is a complex process and there\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.oneaccounting.co.uk\/points-to-consider-when-valuing-goodwill\/\" \/>\n<meta property=\"og:site_name\" content=\"One Accounting\" \/>\n<meta property=\"article:published_time\" content=\"2022-01-06T04:00:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-01-11T11:13:20+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.oneaccounting.co.uk\/wp-content\/uploads\/2022\/01\/48906666-bb14-40b7-9e32-0ed27221a109.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"522\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.oneaccounting.co.uk\/points-to-consider-when-valuing-goodwill\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.oneaccounting.co.uk\/points-to-consider-when-valuing-goodwill\/\"},\"author\":{\"name\":\"Admin\",\"@id\":\"https:\/\/www.oneaccounting.co.uk\/#\/schema\/person\/846d7ee0fcbd148e3fd1aa38300917d3\"},\"headline\":\"Points to consider when valuing goodwill\",\"datePublished\":\"2022-01-06T04:00:00+00:00\",\"dateModified\":\"2023-01-11T11:13:20+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.oneaccounting.co.uk\/points-to-consider-when-valuing-goodwill\/\"},\"wordCount\":244,\"publisher\":{\"@id\":\"https:\/\/www.oneaccounting.co.uk\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.oneaccounting.co.uk\/points-to-consider-when-valuing-goodwill\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.oneaccounting.co.uk\/wp-content\/uploads\/2022\/01\/48906666-bb14-40b7-9e32-0ed27221a109.jpg\",\"articleSection\":[\"Business\",\"News\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.oneaccounting.co.uk\/points-to-consider-when-valuing-goodwill\/\",\"url\":\"https:\/\/www.oneaccounting.co.uk\/points-to-consider-when-valuing-goodwill\/\",\"name\":\"Points to consider when valuing goodwill - One Accounting\",\"isPartOf\":{\"@id\":\"https:\/\/www.oneaccounting.co.uk\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.oneaccounting.co.uk\/points-to-consider-when-valuing-goodwill\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.oneaccounting.co.uk\/points-to-consider-when-valuing-goodwill\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.oneaccounting.co.uk\/wp-content\/uploads\/2022\/01\/48906666-bb14-40b7-9e32-0ed27221a109.jpg\",\"datePublished\":\"2022-01-06T04:00:00+00:00\",\"dateModified\":\"2023-01-11T11:13:20+00:00\",\"description\":\"Valuing goodwill is a complex process and there\",\"breadcrumb\":{\"@id\":\"https:\/\/www.oneaccounting.co.uk\/points-to-consider-when-valuing-goodwill\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.oneaccounting.co.uk\/points-to-consider-when-valuing-goodwill\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.oneaccounting.co.uk\/points-to-consider-when-valuing-goodwill\/#primaryimage\",\"url\":\"https:\/\/www.oneaccounting.co.uk\/wp-content\/uploads\/2022\/01\/48906666-bb14-40b7-9e32-0ed27221a109.jpg\",\"contentUrl\":\"https:\/\/www.oneaccounting.co.uk\/wp-content\/uploads\/2022\/01\/48906666-bb14-40b7-9e32-0ed27221a109.jpg\",\"width\":800,\"height\":522},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.oneaccounting.co.uk\/points-to-consider-when-valuing-goodwill\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"News\",\"item\":\"https:\/\/www.oneaccounting.co.uk\/category\/news\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Business\",\"item\":\"https:\/\/www.oneaccounting.co.uk\/category\/news\/business\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Points to consider when valuing goodwill\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.oneaccounting.co.uk\/#website\",\"url\":\"https:\/\/www.oneaccounting.co.uk\/\",\"name\":\"One Accounting\",\"description\":\"Small Business Accountants Edinburgh\",\"publisher\":{\"@id\":\"https:\/\/www.oneaccounting.co.uk\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.oneaccounting.co.uk\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.oneaccounting.co.uk\/#organization\",\"name\":\"One Accounting\",\"url\":\"https:\/\/www.oneaccounting.co.uk\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.oneaccounting.co.uk\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/www.oneaccounting.co.uk\/wp-content\/uploads\/2020\/05\/One_Accounting-logo_502px.png\",\"contentUrl\":\"https:\/\/www.oneaccounting.co.uk\/wp-content\/uploads\/2020\/05\/One_Accounting-logo_502px.png\",\"width\":503,\"height\":503,\"caption\":\"One Accounting\"},\"image\":{\"@id\":\"https:\/\/www.oneaccounting.co.uk\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.oneaccounting.co.uk\/#\/schema\/person\/846d7ee0fcbd148e3fd1aa38300917d3\",\"name\":\"Admin\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.oneaccounting.co.uk\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/1e46787b0680a930ed1efa660e68e78c?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/1e46787b0680a930ed1efa660e68e78c?s=96&d=mm&r=g\",\"caption\":\"Admin\"}}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Points to consider when valuing goodwill - One Accounting","description":"Valuing goodwill is a complex process and there","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.oneaccounting.co.uk\/points-to-consider-when-valuing-goodwill\/","og_locale":"en_US","og_type":"article","og_title":"Points to consider when valuing goodwill - One Accounting","og_description":"Valuing goodwill is a complex process and there","og_url":"https:\/\/www.oneaccounting.co.uk\/points-to-consider-when-valuing-goodwill\/","og_site_name":"One Accounting","article_published_time":"2022-01-06T04:00:00+00:00","article_modified_time":"2023-01-11T11:13:20+00:00","og_image":[{"width":800,"height":522,"url":"https:\/\/www.oneaccounting.co.uk\/wp-content\/uploads\/2022\/01\/48906666-bb14-40b7-9e32-0ed27221a109.jpg","type":"image\/jpeg"}],"author":"Admin","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Admin","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.oneaccounting.co.uk\/points-to-consider-when-valuing-goodwill\/#article","isPartOf":{"@id":"https:\/\/www.oneaccounting.co.uk\/points-to-consider-when-valuing-goodwill\/"},"author":{"name":"Admin","@id":"https:\/\/www.oneaccounting.co.uk\/#\/schema\/person\/846d7ee0fcbd148e3fd1aa38300917d3"},"headline":"Points to consider when valuing goodwill","datePublished":"2022-01-06T04:00:00+00:00","dateModified":"2023-01-11T11:13:20+00:00","mainEntityOfPage":{"@id":"https:\/\/www.oneaccounting.co.uk\/points-to-consider-when-valuing-goodwill\/"},"wordCount":244,"publisher":{"@id":"https:\/\/www.oneaccounting.co.uk\/#organization"},"image":{"@id":"https:\/\/www.oneaccounting.co.uk\/points-to-consider-when-valuing-goodwill\/#primaryimage"},"thumbnailUrl":"https:\/\/www.oneaccounting.co.uk\/wp-content\/uploads\/2022\/01\/48906666-bb14-40b7-9e32-0ed27221a109.jpg","articleSection":["Business","News"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.oneaccounting.co.uk\/points-to-consider-when-valuing-goodwill\/","url":"https:\/\/www.oneaccounting.co.uk\/points-to-consider-when-valuing-goodwill\/","name":"Points to consider when valuing goodwill - One Accounting","isPartOf":{"@id":"https:\/\/www.oneaccounting.co.uk\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.oneaccounting.co.uk\/points-to-consider-when-valuing-goodwill\/#primaryimage"},"image":{"@id":"https:\/\/www.oneaccounting.co.uk\/points-to-consider-when-valuing-goodwill\/#primaryimage"},"thumbnailUrl":"https:\/\/www.oneaccounting.co.uk\/wp-content\/uploads\/2022\/01\/48906666-bb14-40b7-9e32-0ed27221a109.jpg","datePublished":"2022-01-06T04:00:00+00:00","dateModified":"2023-01-11T11:13:20+00:00","description":"Valuing goodwill is a complex process and there","breadcrumb":{"@id":"https:\/\/www.oneaccounting.co.uk\/points-to-consider-when-valuing-goodwill\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.oneaccounting.co.uk\/points-to-consider-when-valuing-goodwill\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.oneaccounting.co.uk\/points-to-consider-when-valuing-goodwill\/#primaryimage","url":"https:\/\/www.oneaccounting.co.uk\/wp-content\/uploads\/2022\/01\/48906666-bb14-40b7-9e32-0ed27221a109.jpg","contentUrl":"https:\/\/www.oneaccounting.co.uk\/wp-content\/uploads\/2022\/01\/48906666-bb14-40b7-9e32-0ed27221a109.jpg","width":800,"height":522},{"@type":"BreadcrumbList","@id":"https:\/\/www.oneaccounting.co.uk\/points-to-consider-when-valuing-goodwill\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"News","item":"https:\/\/www.oneaccounting.co.uk\/category\/news\/"},{"@type":"ListItem","position":2,"name":"Business","item":"https:\/\/www.oneaccounting.co.uk\/category\/news\/business\/"},{"@type":"ListItem","position":3,"name":"Points to consider when valuing goodwill"}]},{"@type":"WebSite","@id":"https:\/\/www.oneaccounting.co.uk\/#website","url":"https:\/\/www.oneaccounting.co.uk\/","name":"One Accounting","description":"Small Business Accountants Edinburgh","publisher":{"@id":"https:\/\/www.oneaccounting.co.uk\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.oneaccounting.co.uk\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.oneaccounting.co.uk\/#organization","name":"One Accounting","url":"https:\/\/www.oneaccounting.co.uk\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.oneaccounting.co.uk\/#\/schema\/logo\/image\/","url":"https:\/\/www.oneaccounting.co.uk\/wp-content\/uploads\/2020\/05\/One_Accounting-logo_502px.png","contentUrl":"https:\/\/www.oneaccounting.co.uk\/wp-content\/uploads\/2020\/05\/One_Accounting-logo_502px.png","width":503,"height":503,"caption":"One Accounting"},"image":{"@id":"https:\/\/www.oneaccounting.co.uk\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/www.oneaccounting.co.uk\/#\/schema\/person\/846d7ee0fcbd148e3fd1aa38300917d3","name":"Admin","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.oneaccounting.co.uk\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/1e46787b0680a930ed1efa660e68e78c?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/1e46787b0680a930ed1efa660e68e78c?s=96&d=mm&r=g","caption":"Admin"}}]}},"_links":{"self":[{"href":"https:\/\/www.oneaccounting.co.uk\/wp-json\/wp\/v2\/posts\/5084"}],"collection":[{"href":"https:\/\/www.oneaccounting.co.uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.oneaccounting.co.uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.oneaccounting.co.uk\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.oneaccounting.co.uk\/wp-json\/wp\/v2\/comments?post=5084"}],"version-history":[{"count":1,"href":"https:\/\/www.oneaccounting.co.uk\/wp-json\/wp\/v2\/posts\/5084\/revisions"}],"predecessor-version":[{"id":7532,"href":"https:\/\/www.oneaccounting.co.uk\/wp-json\/wp\/v2\/posts\/5084\/revisions\/7532"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.oneaccounting.co.uk\/wp-json\/wp\/v2\/media\/5085"}],"wp:attachment":[{"href":"https:\/\/www.oneaccounting.co.uk\/wp-json\/wp\/v2\/media?parent=5084"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.oneaccounting.co.uk\/wp-json\/wp\/v2\/categories?post=5084"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.oneaccounting.co.uk\/wp-json\/wp\/v2\/tags?post=5084"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}