1st Definition

“Goodwill may be said to be that element arising from the reputation, connections, or other advantages possessed by a business which enables it to earn greater profits than the returns normally to be expected on capital represented by the net tangible assets employed in the business.”

[Spicer and Pegler]

2nd Definition

Goodwill is the present value of expected future profit that is likely to be in excess of the normal return on investment or for the excess price paid for a business as a whole over the book value or over the computed or agreed value of net assets, i.e., Assets – Liabilities.

3rd Definition

“Goodwill is nothing more than the probability that the old customers will resort to the old place.”

[Lord Eldon]

4th Definition

“When a man pays for goodwill, he pays for something which places him in the position of being able to earn more than he would be able to do by his own unaided efforts.”

5th Definition

“The term goodwill is generally used to denote the benefit arising from connections and reputation.”

[Lord Lindley]