Intangible assets amortization schedule - model
I am building a model for a software co that does regular acquisitions every year. The companies it acquires have plenty of definite lived intangibles that need to be amortized.
1.Over the past year, the weighted average life of the definite lived intangible assets of all the acquired companies was 6 years. Is there a better way to estimate what the average useful life of these assets would be in future acquisitions?
2. I am projecting that the company will continue making acquisitions as the average of the acquisitions it made each year 5 years back. Is there a better way to estimate the acquisitions it would make going forward? Management does not provide much guidance.
3. My model is for 5 years forward. Is there a problem if the intangibles do not completely amortize by the end of the forecast period?
Cheers!
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