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Value of Goodwill

  • Practice Licence
  • 18 posts
  • # 113819

Hello peeps. I'm contemplating charging my newly formed LTD Company for the Goodwill acquisition from my Sole Trader business.  I understand about profits and super profits but this seems a bit ott for the size of my business.  I have read somewhere that often an accountancy firm will charge 1 - 1.5 x total turnover rather than looking at net profits and liabilities etc.  Would this sound reasonable?  My LTD Company has now begun trading with a full remit of fee paying clients having incurred no marketing overheads.  I will also look into stock transfer, fixed assets and licence fee's etc but am deliberating over the intangiable assets currently.

If anyone has calculated this before, please could you advise what worked for you?

Thank you, from one over worked bookkeeper to another Wink

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