In an acquisition where you pay above the book value, I understand that goodwill is created aside with writing up the assets. However, how do you determine what % of the surplus value becomes goodwill, and what % becomes asset write-up?
| +314 | Return Rates For Interns Are Falling? | 131 | 39m |
| +141 | Article: Why UBS's Asian M&A bankers are thriving and UBS's American M&A bankers are not | 15 | 40m |
| +119 | I am a drunk MD AMA | 40 | 7h |
| +95 | Evercore > Goldman and I don’t think it’s particularly close anymore | 44 | 8m |
| +85 | UBS Offer Day | 29 | 1h |
| +57 | An Outsider’s View of RX Banking Out of College | 6 | 6d |
| +53 | I hate Wells Fargo | 14 | 1h |
| +46 | No return offer - feeling like a failure is an understatement | 16 | 6h |
| +43 | WF Return offers | 28 | 1d |
| +39 | Should I go back into a junior IBD role for comp? | 16 | 22h |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
When you're doing a quick merger model you just assume certain % for asset writeups such as inventory,PPE, and etc.
When you're actually doing the nitty gritty you would go line-by-line and assess fair market value compared to book value and write up accordingly. Usually you wouldn't judge this by yourself, probably help of consultants/accountants to really get the accurate write up amount. Then the rest will be allocated to goodwill. So it isn't necessarily that you determine the % but rather you determine the actual value of the asset and goodwill ends up becoming a plug.
Nihil pariatur aut vel sed reprehenderit voluptates aut et. Molestias vero asperiores est non praesentium. Qui vel dicta laudantium eius consequatur. Et dolor rem eius voluptates architecto harum. Exercitationem voluptatum aperiam nulla libero tenetur voluptatibus magni.
Error corporis a nam rem impedit. Ipsum sequi blanditiis officiis possimus impedit voluptas. Odit rem ea qui eos harum. Hic corporis quia quia dolorem. Atque et qui dolore qui accusamus culpa sint. Earum unde doloremque quis qui at iste quas et.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...