noun
goodwill; intangible assets
Business term for the premium paid for a company's reputation, brand, and customer relationships beyond its tangible assets.
会社を買収するとき、のれん代が発生することがある。
When acquiring a company, goodwill may arise.
のれん代は無形固定資産として計上される。
Goodwill is recorded as an intangible fixed asset.
のれん originally means a shop curtain, symbolizing a store's reputation and goodwill. のれん代 is the monetary valuation of that intangible asset.
Compound of のれん (shop curtain, symbolizing a business's reputation) and 代 (price, fee). The term reflects the traditional Japanese concept of a store's goodwill being as tangible as its physical curtain.