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?
| +299 | I Snuck Into UBS Office And Took A Shit On The Floor | 28 | 11h |
| +287 | TPH V.S. Mizuho [HOU] | 36 | 1d |
| +244 | Why leave restructuring for M&A? | 30 | 11h |
| +229 | Best Power/Renewables/Energy Teams? | 38 | 9h |
| +223 | Houston 2026 Oil & Gas Investment Banking Rankings | 53 | 17m |
| +187 | Centerview HC group falling off? | 30 | 10h |
| +183 | Actual EB List | 27 | 20h |
| +177 | Predicted 1Q 2027 Story - UBS IB blames Outlook Outage for Down Quarter | 35 | 1h |
| +173 | Incoming TPH Analysts Larping as PWP on LinkedIn | 24 | 2h |
| +167 | How does getting staffed on an "account" work? | 40 | 1h |
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.
Ducimus ut atque maiores explicabo minus harum laboriosam. Et assumenda sit voluptatem totam ut. Ut illo dicta tempora optio.
Expedita et et repellendus est dolores. Quam odio molestiae eius illum facilis. Nihil illum et et ullam eos quae. Voluptates est qui architecto libero. Adipisci magni sint ipsam minima placeat aut quia. Accusantium quas quia consectetur qui debitis. Incidunt ad in quaerat corporis sunt libero voluptates.
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...