business assets such as reputation and expertise an intangible asset of a company which includes factors such as reputation, contacts, and expertise, for which a buyer of the company may have to pay a premium.
Goodwill becomes an intangible asset when a company has been acquired by another. It then appears on a balance sheet in the amount by which the price paid by the acquiring company exceeds the net tangible assets of the acquired company. In other words
Purchase price – Net assets = Goodwill
If an airline is bought for $12 billion and its net assets are valued at $9 billion, $3 billion of the purchase would be allocated to goodwill on the balance sheet.