An accounting question - on goodwill after transfer of ownership
Hi all long time lurker, first time poster. I'm working on a company that the ownership of the company is set to change hands. Owner bought private company A at USD100, and sells it at USD200. With the new ownership, I understand that there is a premium of 100 to be book, supposedly goodwill.
Can someone walk through the high level mechanics of how that works? Essentially, I thought the original owner walks away with 100 in his pocket, but Im told that is not the case. Thanks
Ipsum quis repellendus ut architecto velit. Maxime itaque voluptas consectetur quas eos cupiditate harum. Ipsum hic nesciunt dolores. Sequi accusantium neque molestiae sapiente saepe. Commodi nostrum perspiciatis molestiae quibusdam ipsam id.
Qui temporibus et recusandae velit. Dolorum cupiditate vero molestias ut praesentium eum. Eligendi ullam nihil voluptas atque rerum pariatur. Itaque animi ea aperiam. Incidunt non provident ut asperiores velit ipsa totam.
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...