“Many business valuations are influenced by goodwill, but amazingly, there is no standard, functional definition of personal goodwill,” says David Wood (Wood Valuation). To help correct the problem, Wood and BVR’s Adam Manson reviewed the leading business valuation textbooks, articles, and court cases. They assembled the definitions in a summary table and then analyzed each entry according to its key words, phrases, and concepts. Personal Goodwill: A Survey of Definitions is now available as a free download from BVResources.

“We believe that by understanding these factors, every business appraiser will be better able to defend their personal goodwill conclusions,” Wood and Manson say. Look for a complete discussion of their research and results—including a proposed functional definition of personal goodwill—in the next (April 2010) Business Valuation Update™. The article is also available in the newly updated, 2010 edition of BVR’s Guide to Personal v. Enterprise Goodwill.

Help with the search. In the meantime, this was their first review, and the authors have agreed to perform an annual update. “I am sure that we missed someone’s definition of personal goodwill or a court case,” Wood says. “If you know of one, please email us dwood@woodvaluation.com or adamm@bvresources.com.”