Before they can market their company or weigh any offers they may receive, business owners must confront the central question: How much is my business worth?
Hot companies, inflated stock prices and aggressive acquisition strategies will most likely result in a lot of goodwill being carried on the books of the acquiring company. Since traditional goodwill was defined as the excess of the purchase price over net assets, it could also include purchase price overpayments, anticipated but unrealized synergies, and other intangible assets having an estimated life much shorter than the traditional 40-year amortization period.