Finance and valuation
Goodwill
Goodwill is the part of a practice's value that comes from its patients, reputation and location rather than from its equipment, supplies or other physical assets.
Goodwill is an intangible asset, which means it has value but no physical form. The SBA's glossary lists goodwill with patents and trademarks as examples of intangible assets. ADA News (March 2026) refers to ownership of patient goodwill and advises dentists to separate it from equity in a management entity. When a business is sold, the buyer and seller must divide the price among the assets, and IRS Publication 544 places goodwill and going concern value in the last class of assets. That split affects taxes, so use a CPA and an attorney. Goodwill is often part of the price in an asset sale. See practice valuation.