{"ok":true,"canonical_url":"https://dealroom.so/glossary/negative-goodwill","api_url":"https://dealroom.so/api/public/glossary/negative-goodwill","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"negative-goodwill","term":"Negative goodwill","group":"Reading the business","definition":"This occurs when you buy a business for less than the fair value of its identifiable net assets. It suggests you've found a bargain, often due to a distressed seller or unique market conditions.","what_it_means":"While rare, negative goodwill means you're getting more assets than you paid for. It's a strong indicator of a bargain purchase. You'll need to properly account for this difference, usually by reducing certain non-current assets or recognizing a gain on the purchase.","url":"https://dealroom.so/glossary/negative-goodwill","official_sources":[],"related":[{"slug":"bargain-purchase","term":"Bargain purchase","url":"https://dealroom.so/glossary/bargain-purchase"},{"slug":"goodwill","term":"Goodwill","url":"https://dealroom.so/glossary/goodwill"},{"slug":"business-valuation","term":"Business valuation","url":"https://dealroom.so/glossary/business-valuation"},{"slug":"asset-purchase","term":"Asset purchase","url":"https://dealroom.so/glossary/asset-purchase"}],"related_questions":[{"question":"What if the business I'm acquiring has *negative goodwill*?","url":"https://dealroom.so/sba-loans/basics/what-if-the-business-i-m-acquiring-has-negative-goodwill"},{"question":"What if the business I'm acquiring has significant negative working capital at closing?","url":"https://dealroom.so/sba-7a/questions/what-if-the-business-i-m-acquiring-has-significant-negative-working-capital-at-closing"},{"question":"How does negative working capital at the time of acquisition impact SBA 7(a) loan eligibility?","url":"https://dealroom.so/sba-7a/questions/how-does-negative-working-capital-at-the-time-of-acquisition-impact-sba-7-a-loan-eligibili"},{"question":"Can I use an SBA 7(a) loan to purchase a business with a negative net worth?","url":"https://dealroom.so/sba-7a/questions/can-i-use-an-sba-7-a-loan-to-purchase-a-business-with-a-negative-net-worth"},{"question":"Can an SBA 7(a) loan be used to purchase a business with a negative net worth?","url":"https://dealroom.so/sba-loans/basics/can-an-sba-7-a-loan-be-used-to-purchase-a-business-with-a-negative-net-worth"},{"question":"Can an SBA 7(a) loan be used to purchase a business with a negative tangible net worth?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-be-used-to-purchase-a-business-with-a-negative-tangible-net-worth"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Negative goodwill","url":"https://dealroom.so/glossary/negative-goodwill","source_type":"DealRoom Data"}}