The terms Goodwill and Blue Sky are often used interchangeably. A primary reasons for this is that it is assumed that they are the same thing.  For practical purposes, in regards to business valuations, there is a distinction between the two terms. Goodwill: Let’s start with Goodwill.  A conventional definition of Goodwill would be the amount of money paid for an on-going business beyond its book value.  A simple example is a business that has $600,000 in tangible … Read entire article »