Goodwill Vs Plant & Equipment

Goodwill vs Plant And Equipment

As Perth Business Brokers we strive hard to give an understanding to both buyers and sellers of the difference between Goodwill and Plant & Equipment when buying and selling a business.

A sale of a business will involve at least the following components as part of the sale;

Goodwill
Plant and Equipment

It important to understand the differences and value of the Goodwill and Plant and Equipment as this can have different tax consequences and implications for both the buyer and seller.

Goodwill is the value of the business. A number of factors can determine the Goodwill and this really comes down to profits of the business. Goodwill is subject to capital gains tax. It is more favourable for a seller to show more goodwill as part of a sale as the tax benefits are better. If you need further advice, you can speak to one of our Business Brokers who are also Public Accountants, right here in Perth and we can offer specialised advice. As a buyer you will not see the benefit of the value of Goodwill until the time comes to sell the business.

Plant & Equipment forms part of the sale alongside Goodwill. This is generally equipment used in operating the business. Owners may have their own personal motor vehicles, which is generally not included as part of the sale. The value of plant & equipment can be worked out by an independent valuation or generally the closing written down value on a seller’s depreciation schedule. At SOT Business Brokering, we understand the importance of the value of plant and equipment and can illustrate how these impact both the sale and purchase of the business.

We will assist and negotiate on your behalf as a seller to make sure you get the maximum out of your sale. The negotiation process in deciding the split between Goodwill and Plant & Equipment can be quite challenging, as buyers will generally want to show more value on Plant & Equipment than Goodwill. Buyers in most cases can claim the Plant & Equipment. For more information relating to the sale of your business, you can reach out to one of our business brokers, located right here in Perth.

What our clients say

Claire B ⭐⭐⭐⭐⭐

Business Seller - "We really appreciate the work you...

"Thanks Alex for your help with selling our business. We really appreciate the work you put in."

Alessandro S ⭐⭐⭐⭐⭐

Business Buyer - "Helping and supporting us every step...

"I want to give a big thank you to Alex from SOT Corporate for helping me achieve our dream of owning a business. After many cold calls to different brokers in Perth , We finally found Alex. He took the time to understand my goals and gave...

"I want to give a big thank you to Alex from SOT Corporate for helping me achieve our dream of owning a business. After...

Paul C ⭐⭐⭐⭐⭐

Business Seller - "We achieved a rate 4x..."

"We approached a number of brokers whose only concern was how much I was willing to dump my business for. SOT approached us professionally and ran through what we could expect in terms of selling our business. We achieved a rate 4x what other...

"We approached a number of brokers whose only concern was how much I was willing to dump my business for. SOT approached...

Anthony M ⭐⭐⭐⭐⭐

Business Seller - "Consistently a quick responsive...

"Alex @ SOT our business broker has been consistently a quick responsive communicator, able to properly listen and understand all.We are grateful for his positive service throughout and the completion of the sale.Thank you Alex we would recommend...

"Alex @ SOT our business broker has been consistently a quick responsive communicator, able to properly listen and understand...

Tonia G ⭐⭐⭐⭐⭐

Business Seller - "An honest business broker..."

"Caleb and the team at SOT took on the challenge of attempting to sell our business with a very limited timeframe to achieve a sale when other brokers were uninterested in “giving it a go”. Despite the reduced chances of making a...

"Caleb and the team at SOT took on the challenge of attempting to sell our business with a very limited timeframe to achieve...

Barjesh K ⭐⭐⭐⭐⭐

Business Seller - "Very easy and clear to deal wit...

"Very easy and clear to deal with Mark. Best experience for sure, I will surely contact him for any sale or purchase of any business in future."

"Very easy and clear to deal with Mark. Best experience for sure, I will surely contact him for any sale or purchase of any...

Veli K ⭐⭐⭐⭐⭐

Business Seller - "Great from start to finish..."

"Alex was great from start to finish with our sale of business! His communication was consistent, prompt and very helpful even when dealing with time wasters. We will definitely recommend him."

"Alex was great from start to finish with our sale of business! His communication was consistent, prompt and very helpful...

JP de Gaye ⭐⭐⭐⭐⭐

JP de Gaye Electrical - "I could not have been happier...

"Hi Alex, I just wanted to take a moment to sincerely thank you for the work you completed on Veronica and my behalf with the selling of our Electrical business. As you were aware, my interests in selling my business was primarily...

"Hi Alex, I just wanted to take a moment to sincerely thank you for the work you completed on Veronica and my...

Sven Bartelt ⭐⭐⭐⭐⭐

Tiisch Cafè Bistro - "...their dedication to our growth...

"We developed a great partnership with SOT, and their dedication to our growth is evident in all aspects of our business. We appreciate their attention to detail and creative approach to bringing our new business model to life."

"We developed a great partnership with SOT, and their dedication to our growth is evident in all aspects of our business....

Kristy S ⭐⭐⭐⭐⭐

Café in Subiaco - "Excellent communication and sup...

"I recently bought a café in Subiaco via SOT Business Brokers and I was very happy with the overall service. Excellent communication and support – it’s a big decision to buy and I felt confident and informed the whole way...

"I recently bought a café in Subiaco via SOT Business Brokers and I was very happy with the overall service. Excellent...