I do not think that 5 million is a lot to pay for the goodwill...

I do not think that 5 million is a lot to pay for the goodwill of the business,you have to remember that goodwill covers such things existing contacts on a medium term basis, if the company they have bought has been around for a while then the incumbency factor of these relationships should not be underestimated,
Most of the companies they are going to deal with justwant a hassle free solution to their business