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There are quite a number of demerits of a goodwill. The main disadvantage is the fact that it will be an additional expense when you are setting up your business and this is might not bring any returns to the business.
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Definition of Goodwill payment?
goodwill
How do you sell goodwill?
You cannot sell goodwill, at least in accounting. Goodwill is the amount that you overpaid. You can sell an asset at a high price but you cannot sell directly the goodwill.
Can you amortize goodwill?
You can no longer amortize goodwill. Instead you annually test it for impairment.
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