I have to model the goodwill for a European blue chip TMT company, that have annual goodwill impairment but normally performs M&A activity (and surely will keep doing next 5 years)
Do you guys have any suggestion? Some analysts prefer to keep it flat, but in this case it is not likely.
Thanks a lot,
Just kind of spittballing. Maybe grow goodwill as a % of a factor (revenue might not be bad if revenue growth is from acquisitions), then take a historical impairment % of the nominal amount?
Interested to see how other monkeys think of this.
I would not forecast a goodwill adjustment or an acquisition. I would wait until management writes down goodwill or makes an acquisition announcement. I would just model it flat.
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