Businesses such as accountants, veterinarians, barbers, hair stylists and dentists possess goodwill: they have repeat customers they can transfer to a new owner. This book provides a guide to buyers and sellers in setting a value for such firms that is both fair and rational. Goodwill in Small Service Businesses clearly explains the many problems with existing appraisal methods, and develops an alternative appraisal approach rooted in the basic universal concepts of fairness uncovered by behavioral economists such as Kahneman and Tversky. The author's new appraisal approach also stresses the importance of accurate forecasting of future economic returns to potential buyers and the need to utilize computer simulations to capture the risks associated with the acquisition of an established service firm. This book will prove very useful to buyers and sellers of smaller closely held service firms as well as business appraisers, attorneys, judges, lenders and accountants. Numerous real world examples are included along with a case study illustrating the application of the author's new appraisal approach.