Your Hard-Earned Goodwill Makes Your Business More Valuable
06 Oct 2021

Your Hard-Earned Goodwill Makes Your Business More Valuable

Over the years you have worked hard

06 Oct 2021

Over the years you have worked hard to please customers, make a great product or service, develop unique designs, and build your company into a well-known name in your industry.

Business experts refer to that as your Goodwill. It’s a combination of brand awareness and the good feeling people get when they think of your company.

If someone offers a can of Coke or a can of Ruby’s Discount Cola, you will probably choose the Coke. Why? You’ve tried Coke before, you’ve seen it everywhere all your life, you trust its quality, and know you’ll probably like it.

Ruby’s might be the best cola in America, but you’ve never heard of it and frankly don’t care to try it.

That’s Goodwill. MBA’s find your Goodwill mathematically by adding up what you earn with location, equipment, and employees, then figuring how much more you earn above that in profits. It’s a statistical way of getting at your company’s Goodwill.

Goodwill adds significantly, in real terms, to your company’s value.

Gibraltar Sales Group (GSG) is a business liquidator. Goodwill plays a big role in the value of your business. We seek businesses with a solid name and good reputation. For example, if we receive a call from a BDC retailer and a call from Bloomingdales, you can guess which we will accept first.

Bloomingdales has a well-known name, lots of customers, and a mountain of Goodwill. Their value will be far higher than the young, little known retailer.

When you plan to sell your business, search for a partner, sell shares, or conduct a retirement sale, Goodwill plays an important role in how much demand and value there is for your company.

Goodwill can be the big payoff for your years of hard, determined work.

You don’t have to be a famous brand. Goodwill takes on many forms.  A strong reputation, a great location, and your own proprietary designs can increase your Goodwill and value.

Your business may have trademarks, copyrights, trade secrets, and specialized know-how others in your industry would love to own. Your skilled employees are some of the best anywhere and add a lot of value to your business.

You may have advanced equipment that makes you a leader, a custom-built factory, or special tooling that will add value and make buyers interested.

Very often potential new partners or shareholders will be delighted to learn you have a loyal customer base that can be counted on well into the future.

The big mailing list you worked so hard to build, the industry connections you developed while building your supplier list, and royalty agreements can all add major Goodwill to your company.

Your Goodwill can be a prominent factor in how your company is valued. Please contact us at GSG for your no-obligation discussion on how Goodwill can help achieve your liquidation goals.

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