Accounting – Goodwill
Articles
What Is Goodwill and Why Does It Get Impaired?
A plain-English guide to how goodwill is created in an acquisition, why it isn't amortized, and what actually triggers a goodwill impairment charge.
How to Answer the Goodwill Impairment Interview Question
A step-by-step framework for answering the classic goodwill creation and impairment interview question, including the 3-statement walk-through interviewers listen for.
What Is Purchase Accounting? Goodwill, Step-Ups, and the Deferred Revenue Haircut Explained
What is purchase accounting and how does it work? Learn how goodwill, asset step-ups, and the deferred revenue haircut apply after a deal. Practice now.
How to Answer a Purchase Price Allocation Interview Question (Step-by-Step Framework)
How do you answer a purchase price allocation interview question? Master the 5-step framework covering step-ups, DTL, and goodwill plug. Practice now.
What Is Purchase Price Allocation (PPA)? Goodwill, Step-Ups, and Why It Matters
What is purchase price allocation? PPA explained: how the price splits into fair value step-ups, identifiable intangibles and residual goodwill. Jetzt üben.
How to Answer a Purchase Price Allocation (PPA) Interview Question
A quick refresher on answering a PPA interview question: the allocation sequence, the goodwill plug and the deferred tax step, in brief. Jetzt üben.
Cases
Goodwill: Creation and Impairment
Walk me through how goodwill is created in an acquisition, when a company needs to write it down, and what happens across the financial statements when it does.
Purchase Accounting After an Acquisition
As an M&A analyst, you are tasked with walking through the purchase accounting for an acquisition — calculating the fair value step-ups, the deferred tax liability they create, the resulting goodwill, the incremental amortization burden, and the deferred revenue haircut's impact on post-close revenue.
Purchase Price Allocation (PPA)
As a junior M&A analyst, you are tasked with performing the purchase price allocation (PPA) for a recent acquisition — determining how much of the purchase price creates goodwill versus fair value step-ups, and quantifying the amortization burden those step-ups place on the combined company's future earnings.