Valuation of Goodwill for an Engineering Firm-Reference-Cited by-同舟云学术

Valuation of Goodwill for an Engineering Firm

Published:2024-05-19 Issue:5 Volume:17 Page:212
ISSN:1911-8074
Container-title:Journal of Risk and Financial Management
language:en
Short-container-title:JRFM

Author:

Lohar Bhushan¹^ORCID,Wade John¹²^ORCID,Walker Sean¹^ORCID

Affiliation:

1. Department of Systems Engineering, University of South Alabama, Mobile, AL 36688, USA

2. Gulf States Engineering, Inc., Gulfport, MS 39501, USA

Abstract

The concept of valuing personal and enterprise goodwill is a study in the art of quantifying subjective values. Sellers strive to maximize goodwill, while buyers strive to minimize goodwill. No persons are denying the existence of goodwill; rather, the debate is centered around the value of that goodwill. This paper seeks to define a holistic approach to fairly quantifying the value of goodwill for an engineering firm. The Graph Model for Conflict Resolution (GMCR), a decision tool grounded in game theory, is used to illustrate the inherent conflict around setting an accurate goodwill value and the inherent negotiation between buyers and sellers.

Publisher

MDPI AG

Link

https://www.mdpi.com/1911-8074/17/5/212/pdf

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