M&A Science cover image

Valuation Principles and Working with Earnouts

M&A Science

00:00

How to Measure Goodwill Impairment

Goodwill is tested at what's called reporting unit level. Goodwill is the excess purchase price. At the time of the transaction, we're going to adjust the goodwill on our books. It's a non-cash item. From a cash flow perspective, it's not overly meaningful. But from a reputation perspective, I would say it's meaningful. The management is saying, hey, we overpaid on this acquisition.

Transcript
Play full episode

The AI-powered Podcast Player

Save insights by tapping your headphones, chat with episodes, discover the best highlights - and more!
App store bannerPlay store banner
Get the app