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Goodwill is triggered when an entity is purchased for more than its
asset value. It is also known as "Excess of Purchase Price over
Net Assets," and is a balancing bookkeeping account. It is
generally amotized over a period of years, though it is not
deductible for business tax purposes. EBG would be net profit plus
any goodwill amortization. If depreciation and taxes are also added
back, you have operating cash flow, a very important measure of
potential value.
JFB
NYC
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