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an asset representing the value of a company over and above its identifiable tangible and intangible assets is referred to as

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An asset representing the value of a company over and above its identifiable tangible and intangible assets is referred to as goodwill.

An intangible asset known as goodwill is related to the acquisition of one business by another. It stands for value that could provide the purchasing business a competitive edge. The percentage of the purchase price that is greater than the total net fair value of all the assets acquired in the acquisition plus the liabilities taken on during the process is known as goodwill.

Aspects of goodwill include the value of a company's name, brand recognition, devoted clientele, strong customer service, positive staff relations and proprietary technology.

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