Amortizing Acquisition Cost

Nevermind. You would take the amortized expense on your IS and the balance would be reflected in Net Income, thereby decreasing cash on the BS. Plus, after a little research, I don't think you can amortize goodwill anymore, it has to be expensed and then tested for impairment yearly.

Very nice Thnks for sharing this usefull info.

Lol no.

What you're talking about is deferred financing fees. If you have an amort expense on the IS and then subtract cash, you're effectively amortizing cash, which makes no sense.

Deferred financing fees come from the debt that is used to finance an M&A transaction. Deferred financing fees are assets that you amortize, resulting in an amort expense year over year and subsequent amortization of the deferred financing fee asset.

Also, since you did not know this nor the goodwill rules, you should change your badge to prospective monkey. There is 0 chance you are at a middle or senior level and it seems highly unlikely that youre in the industry in the first place.

You are an idiotic first year analyst. I'm not talking about financing fees dpsht. I'm talking about the value of a company based on a drug currently in development that won't be approved for sale in the target market for a long time, and that has a finite patent life. I bet you're the tough guy in the CNN comment section too. Now move along and go get sh*t on by everyone in your department first year analyst.