With Enterprise X, the seller receives a value for goodwill because the business is moderately well established and earning more than the buyer could earn elsewhere with similar risks and effort. With Enterprise Y, the seller receives no value for goodwill because the business, even though it may have existed for a considerable time, is not earning as much as the buyer could through outside investment and effort. In fact, the buyer may feel that even an investment of $ 2,000,000— the current appraised value of net assets— is too much because it cannot earn sufficient return.