What Goodwill Really Represents

In valuation, goodwill isn’t an abstract concept.

It represents the expectation that future earnings will continue — consistently and predictably — beyond the value of identifiable assets.

That expectation quietly assumes continuity:
• Of operations
• Of relationships
• Of institutional knowledge
• Of people

When continuity breaks, goodwill doesn’t decline gradually.
It often disappears.

Goodwill assumes continuity.