You bet it’s real; there’s nothing fictitious about goodwill.  Let’s stay small for our example (and avoid the issues of stock, market influences, etc.).  Suppose there’s a popular seafood restaurant in your town.  If happens to be one of your favorites and the elderly owners are retiring and moving to Florida, so it’s up of sale.  Land, building, equipment, supplies, spoons, forks, knives, tables, chairs, etc.—EVERTHING—adds up to $1,250,000.  All things being equal, do you think you can purchase it for $1,250,000?  Of course not; and the reason is goodwill.  Some of the total value lies in its popularity, its customer loyalty, its ability to generate a high return.  True, some of that is intangible, but it’s REAL, just as real as the tables and chairs.  You won’t expect them to give away the parking lot or the deep fryer, why should you expect them to give away the goodwill?  So emphatically, YES, goodwill is real.