Are you having trouble adding more ‘goodwill’ to your business? No, we are not talking about becoming the next Mother Teresa in the corporate world (although that’s nice too). We mean subjective goodwill, that wonderfully elusive fluff in your company’s financials that makes investors go ๐.
What is Subjective Goodwill? ๐ค
Subjective goodwill is like the chefโs secret sauce in a gourmet meal. It’s calculated by deducting net tangible assets (a.k.a. the boring, tangible stuff) from the net present value (NPV) of estimated future cash flows. ๐งฎ
But hold on, here’s where it gets interestingโand more intangible than the air you breathe. This